UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-21227

 

Eaton Vance Insured Pennsylvania Municipal Bond Fund

(Exact name of registrant as specified in charter)

 

The Eaton Vance Building, 255 State Street, Boston, Massachusetts

 

02109

(Address of principal executive offices)

 

(Zip code)

 

Alan R. Dynner

The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 482-8260

 

 

Date of fiscal year end:

September 30

 

 

Date of reporting period:

March 31, 2007

 

 




Item 1. Reports to Stockholders




Semiannual Report March 31, 2007

EATON VANCE
INSURED
MUNICIPAL
BOND
FUNDS

CLOSED-END FUNDS:

Insured Municipal II

Insured California II

Insured Florida

Insured Massachusetts

Insured Michigan

Insured New Jersey

Insured New York II

Insured Ohio

Insured Pennsylvania



IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS, AND PROXY VOTING

Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy ("Privacy Policy") with respect to nonpublic personal information about its customers:

•  Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

•  None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer's account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers.

•  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

•  We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc.

In addition, our Privacy Policy only applies to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer's account (i.e., fund shares) is held in the name of a third-party financial adviser/ broker-dealer, it is likely that only such adviser's privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures.

For more information about Eaton Vance's Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents. The Securities and Exchange Commission (the "SEC") permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders.

Eaton Vance, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial adviser, otherwise.

If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.

Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser.

Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio (if applicable) will file a schedule of its portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC's public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to Portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC's website at www.sec.gov.




Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

TABLE OF CONTENTS

Investment Update

2

 

 

Performance Information and Portfolio Composition

 

 

 

Insured Municipal Bond Fund II

3

Insured California Municipal Bond Fund II

4

Insured Florida Municipal Bond Fund

5

Insured Massachusetts Municipal Bond Fund

6

Insured Michigan Municipal Bond Fund

7

Insured New Jersey Municipal Bond Fund

8

Insured New York Municipal Bond Fund II

9

Insured Ohio Municipal Bond Fund

10

Insured Pennsylvania Municipal Bond Fund

11

 

 

Financial Statements

12

 

 

Dividend Reinvestment Plan

74

 

 

Board of Trustees’ Annual Approval of the Investment Advisory Agreements

76

 

 

Investment Management

79

 

1




Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

INVESTMENT UPDATE

Eaton Vance Insured Municipal Bond Funds (the “Funds”) are designed to provide current income exempt from regular federal income tax, federal alternative minimum tax and, in state specific funds, state personal income taxes, as applicable. The Funds invest primarily in high-grade municipal securities that are insured as to the timely payment of principal and interest.

Economic and Market Conditions

First quarter economic growth rose 1.3% following the 2.2% growth rate achieved in the fourth quarter of 2006.  The housing sector continued to struggle, with the sub-prime sector experiencing continuing pressure, and short term variable rate mortgages resetting higher.  Building permits and housing starts have both fallen significantly from their highs in early 2006, while sales of new and existing home both peaked in 2005.  Away from housing and autos, the economy appears to be slowing but in a somewhat controlled manner.

Inflation measures have remained somewhat elevated on an absolute level, while core inflation measures (less food and energy) are fairly well contained.  With this backdrop, the Fed is in a pausing mode, awaiting further economic inputs to determine the future direction of interest rate moves.  At March 31, 2007, the Federal Funds rate stood at 5.25%

Municipal market supply rose in the first quarter, resulting in underperformance of the municipal sector.  On March 31, 2007, long-term AAA-rated municipal bonds yielded 93% of U.S. Treasury bonds with similar maturities.*

For the six months ended March 31, 2007, the Lehman Brothers Municipal Bond Index† (the “Index”), an unmanaged index of municipal bonds, posted a gain of 1.92%. For more information about each Fund’s performance and that of funds in the same Lipper Classification,† see the Performance Information and Portfolio Composition pages that follow.

Management Discussion

The Funds invest primarily in bonds with maturities of 10 years or longer, as longer-maturity bonds historically have provided greater tax-exempt income for investors than shorter-maturity bonds. Given the flattening of the yield curve for other fixed-income securities over the past two years — with shorter-maturity yields rising more than longer-maturity yields — management felt that the long end of the municipal curve was a relatively attractive place to be positioned. However, given the leveraged nature of the Funds, rising shortterm rates have increased the borrowing costs associated with the leverage. As borrowing costs have risen, the income generated by the Funds has declined. Please see the Performance Information and Portfolio Compostion pages that follow for a description of each Fund’s leverage as of March 31, 2007.

Because of the mixed economic backdrop of contained inflation expectations, a weakened housing market and sustained growth in the labor market, Fund management sustained its somewhat cautious outlook on interest rates. In this environment, Fund management continued to focus on finding relative value within the marketplace – in issuer names, coupons, maturities, sectors and jurisdictions. Relative value trading, which seeks to capitalize on undervalued securities, has enhanced the Funds’ returns during the period.


*

Source: Bloomberg L.P. Yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Fund’s yield.

It is not possible to invest directly in an Index or Lipper Classification. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. The Lipper Average is the average total return, at net asset value, of the funds that are in the same Lipper Classification as the Funds.

 

Past performance is no guarantee of future results.

 

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

 

The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund.

2




Eaton Vance Insured Municipal Bond Fund II as of March 31, 2007

PERFORMANCE INFORMATION AND PORT FOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

7.76

%

One Year

 

13.33

 

Life of Fund (11/29/02)

 

9.44

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.76

%

One Year

 

9.04

 

Life of Fund (11/29/02)

 

9.37

 

 

Market Yields

Market Yield(2)

 

4.72

%(4)

Taxable Equivalent Market Yield(3)

 

7.26

(4)

 

Index Performance(5)

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(6)

Lipper Insured Municipal Debt Funds (Leveraged) Classification - Average Annual Total Returns

 

 

 

Six Months

 

1.94

%

One Year

 

6.05

 

Life of Fund (11/30/02)

 

6.21

 

 

Portfolio Manager: William H. Ahern, CFA

Rating Distribution*(7)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AAA:

AAA

 

85.3

%

AA

 

3.6

%

A

 

8.4

%

BBB

 

2.7

%

 

Fund Statistics(7)

·      Number of Issues:

 

73

 

·      Average Maturity:

 

26.7

 years

·      Average Effective Maturity:

 

10.4

 years

·      Average Call Protection:

 

7.9

 years

·      Average Dollar Price:

 

$

97.17

 

·      Leverage:**

 

34.7

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) The dividend declared on March 31, 2007 reflects a reduction of the monthly dividend of $0.001667 per share.

(5) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(6) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Insured Municipal Debt Funds (Leveraged) Classification (closed end) contained 24, 24 and 24 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(7) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(8) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

3




Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2007

PERFORMANCE INFORMATION AND PORT FOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

6.38

%

One Year

 

8.26

 

Life of Fund (11/29/02)

 

7.56

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.43

%

One Year

 

9.22

 

Life of Fund (11/29/02)

 

8.01

 

 

Market Yields

Market Yield(2)

 

4.78

%(4)

Taxable Equivalent Market Yield(3)

 

8.11

(4)

 

Index Performance(5)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(6)

 

Lipper California Insured Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

2.19

%

One Year

 

6.46

 

Life of Fund (11/30/02)

 

6.29

 

 

Portfolio Manager: Cynthia J. Clemson

Rating Distribution*(7)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AAA:

 

AAA

 

83.1

%

AA

 

2.7

%

A

 

14.2

%

 

Fund Statistics(8)

·      Number of Issues:

 

52

 

·      Average Maturity:

 

25.3

 years

·      Average Effective Maturity:

 

8.5

 years

·      Average Call Protection:

 

6.7

 years

·      Average Dollar Price:

 

$

92.29

 

·      Leverage:**

 

34.8

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares)

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) The dividend declared on March 31, 2007 reflects a reduction of the monthly dividend of $0.002917 per share.

(5) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(6) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Insured Municipal Debt Funds Classification (closed end) contained 13, 13 and 13 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(7) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(8) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

4




Eaton Vance Insured Florida Municipal Bond Fund as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

1.56

%

One Year

 

6.28

 

Life of Fund (11/29/02)

 

5.97

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.36

%

One Year

 

8.41

 

Life of Fund (11/29/02)

 

7.70

 

 

Market Yields

 

Market Yield(2)

 

4.72

%(4)

Taxable Equivalent Market Yield(3)

 

7.26

(4)

 

Index Performance(5)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(6)

 

Lipper Florida Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

1.88

%

One Year

 

5.89

 

Life of Fund (11/30/02)

 

6.21

 

 

Portfolio Manager: Craig R. Brandon, CFA

Rating Distribution*(7)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AAA:

 

AAA

 

91.3

%

AA

 

1.7

%

A

 

7.0

%

 

Fund Statistics(8)

·      Number of Issues:

 

50

 

·      Average Maturity:

 

24.3

 years

·      Average Effective Maturity:

 

8.8

 years

·      Average Call Protection:

 

7.2

 years

·      Average Dollar Price:

 

$

96.04

 

·      Leverage:**

 

35.6

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) The dividend declared on March 31, 2007 reflects a reduction of the monthly dividend of $0.003333 per share.

(5) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(6) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Florida Municipal Debt Funds Classification (closed end) contained 17, 17 and 16 funds for the 6-month, 1-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only.

(7) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(8) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

5




Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

-0.95

%

One Year

 

5.36

 

Life of Fund (11/29/02)

 

8.23

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

2.29

%

One Year

 

8.21

 

Life of Fund (11/29/02)

 

8.33

 

 

Market Yields

 

Market Yield(2)

 

4.41

%

Taxable Equivalent Market Yield(3)

 

7.16

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(5)

 

Lipper Other States Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

1.96

%

One Year

 

6.27

 

Life of Fund (11/30/02)

 

6.74

 

 

Portfolio Manager: Robert B. MacIntosh, CFA

Rating Distribution*(6)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AAA:

 

AAA

 

83.7

%

AA

 

7.4

%

A

 

5.5

%

BBB

 

1.8

%

Non-Rated

 

1.6

%

 

Fund Statistics(8)

·      Number of Issues:

 

39

 

·      Average Maturity:

 

27.3

 years

·      Average Effective Maturity:

 

12.9

 years

·      Average Call Protection:

 

10.1

 years

·      Average Dollar Price:

 

$

104.29

 

·      Leverage:**

 

36.0

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(5) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed end) contained 46, 46 and 46 funds for the 6-month, 1-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month end only.

(6) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

6




Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

5.36

%

One Year

 

3.31

 

Life of Fund (11/29/02)

 

6.35

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

2.73

%

One Year

 

8.22

 

Life of Fund (11/29/02)

 

7.79

 

 

Market Yields

 

Market Yield(2)

 

4.57

%

Taxable Equivalent Market Yield(3)

 

7.32

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(5)

 

Lipper Michigan Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

1.76

%

One Year

 

6.06

 

Life of Fund (11/30/02)

 

6.51

 

 

Portfolio Manager: William H. Ahern, CFA

Rating Distribution*(6)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AAA:

 

AAA

 

82.2

%

AA

 

4.4

%

A

 

12.3

%

BBB

 

1.1

%

 

Fund Statistics(7)

·      Number of Issues:

 

35

 

·      Average Maturity:

 

23.3

 years

·      Average Effective Maturity:

 

7.9

 years

·      Average Call Protection:

 

6.7

 years

·      Average Dollar Price:

 

$

98.14

 

·      Leverage:**

 

36.5

%

 

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 37.54% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(5) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification (closed end) contained 7, 7 and 7 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(6) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

7




Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

-1.30

%

One Year

 

5.72

 

Life of Fund (11/29/02)

 

8.70

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.54

%

One Year

 

10.36

 

Life of Fund (11/29/02)

 

9.03

 

 

Market Yields

 

Market Yield(2)

 

4.49

%

Taxable Equivalent Market Yield(3)

 

7.59

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(5)

 

Lipper New Jersey Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

2.35

%

One Year

 

7.06

 

Life of Fund (11/30/02)

 

7.48

 

 

Portfolio Manager: Robert B. MacIntosh, CFA

Rating Distribution*(6)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AA+:

 

AAA

 

82.4

%

AA

 

2.1

%

A

 

3.4

%

BBB

 

12.1

%

 

Fund Statistics(7)

·      Number of Issues:

 

54

 

·      Average Maturity:

 

24.2

 years

·      Average Effective Maturity:

 

10.8

 years

·      Average Call Protection:

 

8.2

 years

·      Average Dollar Price:

 

$95.71

 

·      Leverage:**

 

35.3

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(5) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification (closed end) contained 13, 13 and 13 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(6) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest.  See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

8




Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

13.38

%

One Year

 

15.90

 

Life of Fund (11/29/02)

 

9.14

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.35

%

One Year

 

8.90

 

Life of Fund (11/29/02)

 

9.05

 

 

Market Yields

 

Market Yield(2)

 

4.43

%

Taxable Equivalent Market Yield(3)

 

7.32

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(5)

 

Lipper New York Insured Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

1.88

%

One Year

 

5.95

 

Life of Fund (11/30/02)

 

6.31

 

 

Portfolio Manager: Craig R. Brandon, CFA

Rating Distribution*(6)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating

distribution at March 31, 2007, is as follows and the average rating is AAA:

 

AAA

 

84.4

%

AA

 

7.0

%

A

 

2.8

%

BBB

 

3.0

%

Non-Rated

 

2.8

 

 

Fund Statistics(7)

·      Number of Issues:

 

44

 

·      Average Maturity:

 

27.2

 years

·      Average Effective Maturity:

 

10.8

 years

·      Average Call Protection:

 

7.4

 years

·      Average Dollar Price:

 

$

102.75

 

·      Leverage:**

 

35.7

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 39.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(5) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Insured Municipal Debt Funds Classification (closed end) contained 12, 12 and 12 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(6) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

9




Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

6.48

%

One

 

8.07

 

Life of Fund (11/29/02)

 

7.15

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.21

%

One Year

 

8.23

 

Life of Fund (11/29/02)

 

7.59

 

 

Market Yields

 

Market Yield(2)

 

4.42

%

Taxable Equivalent Market Yield(3)

 

7.35

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(5)

 

Lipper Other States Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

1.96

%

One Year

 

6.27

 

Life of Fund (11/30/02)

 

6.74

 

 

Portfolio Manager: William H. Ahern, CFA

Rating Distribution*(6)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AA+:

 

AAA

 

82.4

%

AA

 

5.2

%

A

 

5.8

%

BBB

 

2.6

%

Non-Rated

 

4.0

 

 

Fund Statistics(7)

·      Number of Issues:

 

47

 

·      Average Maturity:

 

23.0

 years

·      Average Effective Maturity:

 

9.2

 years

·      Average Call Protection:

 

8.3

 years

·      Average Dollar Price:

 

$

95.14

 

·      Leverage:**

 

35.2

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 39.88% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(5) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification (closed end) contained 46, 46 and 46 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(6) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest.See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

10




Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2007

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

Fund Performance as of 3/31/07(1)

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

Six Months

 

3.33

%

One Year

 

7.40

 

Life of Fund (11/29/02)

 

7.44

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.64

%

One Year

 

8.82

 

Life of Fund (11/29/02)

 

8.24

 

 

Market Yields

 

Market Yield(2)

 

4.62

%(4)

Taxable Equivalent Market Yield(3)

 

7.33

(4)

 

Index Performance(5)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

1.92

%

One Year

 

5.43

 

Life of Fund (11/30/02)

 

4.88

 

 

Lipper Averages(6)

 

Lipper Pennsylvania Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

Six Months

 

2.14

%

One Year

 

6.29

 

Life of Fund (11/30/02)

 

6.83

 

 

Portfolio Manager: Thomas M. Metzold, CFA

Rating Distribution*(7)

By total investments


*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1B to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at March 31, 2007, is as follows and the average rating is AAA:

AAA

 

84.9

%

AA

 

9.7

%

A

 

4.2

%

BBB

 

1.2

%

 

Fund Statistics(8)

·      Number of Issues:

 

58

 

·      Average Maturity:

 

23.5

 years

·      Average Effective Maturity:

 

9.4

 years

·      Average Call Protection:

 

7.1

 years

·      Average Dollar Price:

 

$

101.88

 

·      Leverage:**

 

35.4

%

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s total assets excluding assets and floating rate notes payable deemed held pursuant to FAS Statement 140. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

(1) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) The dividend declared on March 31, 2007 reflects a reduction of the monthly dividend of $0.000833 per share.

(5) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.

(6) The Lipper Averages are the average annual total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification (closed end) contained 9, 9 and 9 funds for the 6-month, 1-year and Life-of-Fund periods. Lipper Averages are available as of month end only.

(7) As of 3/31/07. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(8) As of 3/31/07. Portfolio holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest.See Note 1B to the Fund’s financial statements. Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

11




Eaton Vance Insured Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 181.1%      
Principal Amount
(000's omitted)
 
Security
  Value  
Electric Utilities — 1.0%      
$ 1,600     Sabine River Authority, TX, (TXU Energy Co. LLC),
5.20%, 5/1/28
  $ 1,624,272    
    $ 1,624,272    
Escrowed / Prerefunded — 1.9%      
$ 1,250     Capital Trust Agency, FL, (Seminole Tribe Convention),
Prerefunded to 10/1/12, 8.95%, 10/1/33(5)
  $ 1,528,025    
  1,000     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), Prerefunded to 11/15/13,
5.375%, 11/15/35
    1,091,740    
  390     New York City, NY, Prerefunded to 1/15/13,
5.25%, 1/15/33
    422,393    
    $ 3,042,158    
General Obligations — 10.0%      
$ 5,000     California, 4.50%, 8/1/30(1)   $ 4,939,250    
  4,500     California, 5.25%, 4/1/30     4,794,750    
  2,215     California, 5.50%, 11/1/33     2,413,641    
  3,610     New York City, NY, 5.25%, 1/15/33     3,815,192    
    $ 15,962,833    
Hospital — 9.5%      
$ 1,275     Brevard County, FL, Health Facilities Authority,
(Health First, Inc.), 5.00%, 4/1/36
  $ 1,315,570    
  3,335     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 5.00%, 11/15/34
    3,458,962    
  400     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
    413,120    
  900     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    921,717    
  750     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    788,437    
  380     Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29
    405,924    
  500     Hawaii Department of Budget and Finance,
(Hawaii Pacific Health), 5.60%, 7/1/33
    530,795    
  2,255     Knox County, TN, Health, Educational & Housing
Facilities Board, (Covenant Health), 0.00%, 1/1/38
    486,471    
  5,000     Knox County, TN, Health, Educational & Housing
Facilities Board, (Covenant Health), 0.00%, 1/1/39
    1,013,550    
  1,000     Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32
    1,054,980    
  4,500     South Miami, FL, Health Facility Authority,
(Baptist Health), 5.25%, 11/15/33
    4,711,230    
    $ 15,100,756    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Electric Utilities — 18.9%      
$ 1,000     Burlington, KS, PCR, (Kansas Gas & Electric Co.),
(MBIA), 5.30%, 6/1/31
  $ 1,070,310    
  22,685     Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/23
    11,169,867    
  3,900     JEA, FL, Electric System Revenue,
(FSA), 5.00%, 10/1/34
    3,992,937    
  11,505     Long Island Power Authority, NY, Electric Systems
Revenue, (FGIC), 5.00%, 12/1/23(2)
    12,266,516    
  1,500     Municipal Energy Agency, NE, (Power Supply System),
(FSA), 5.00%, 4/1/36
    1,577,715    
    $ 30,077,345    
Insured-Escrowed / Prerefunded — 15.4%      
$ 8,155     Birmingham, AL, Waterworks and Sewer Board, (MBIA),
Prerefunded to 1/1/13, 5.00%, 1/1/37
  $ 8,697,226    
  5,000     South Carolina Transportation Infrastructure, (AMBAC),
Prerefunded to 10/1/11, 5.25%, 10/1/31
    5,317,650    
  4,610     Texas Southmost Regional Water Authority, (MBIA),
Prerefunded to 9/1/12, 5.00%, 9/1/32
    4,900,568    
  5,335     University of California, (AMBAC), Prerefunded to 9/1/27,
5.00%, 9/1/27
    5,571,554    
    $ 24,486,998    
Insured-General Obligations — 24.3%      
$ 2,550     Butler County, KS, Unified School District No. 394, (FSA),
3.50%, 9/1/24
  $ 2,291,456    
  4,915     California, (XLCA), 5.00%, 10/1/28(2)     5,115,178    
  12,165     Chabot-Las Positas, CA, Community College District,
(AMBAC), 0.00%, 8/1/43
    2,013,186    
  1,515     Chicago, IL, (MBIA), 5.00%, 1/1/42     1,563,374    
  17,000     Coast Community College District, CA, (Election of 2002),
(FSA), 0.00%, 8/1/33
    4,374,100    
  2,500     Frisco, TX, School District, (MBIA), 4.50%, 8/15/40     2,447,000    
  4,830     King County, WA, (MBIA), 5.25%, 1/1/34     4,923,799    
  1,075     North Las Vegas, NV, Wastewater Reclamation System,
(MBIA), 4.25%, 10/1/33
    1,031,226    
  6,250     Philadelphia, PA, (FSA), 5.00%, 9/15/31(2)     6,422,162    
  5,490     Port Orange, FL, Capital Improvements, (FGIC),
5.00%, 10/1/35
    5,739,521    
  2,995     Texas, (Transportation Commission- Mobility Fund),
(FGIC), 4.50%, 4/1/35
    2,964,391    
    $ 38,885,393    
Insured-Hospital — 6.5%      
$ 9,000     Maryland Health and Higher Educational Facilities Authority,
(Medlantic/Helix Issue), (FSA), 5.25%, 8/15/38(2)
  $ 10,455,960    
    $ 10,455,960    

 

See notes to financial statements
12



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Industrial Development Revenue — 1.7%      
$ 2,590     Monroe County, GA, Development Authority,
Pollution Control, (Georgia Power Co.), (AMBAC),
4.90%, 7/1/36
  $ 2,645,918    
    $ 2,645,918    
Insured-Lease Revenue / Certificates of
Participation — 2.8%
     
$ 4,250     Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34
  $ 4,461,948    
    $ 4,461,948    
Insured-Other Revenue — 1.0%      
$ 1,500     Golden State Tobacco Securitization Corp., CA, (AGC),
5.00%, 6/1/45
  $ 1,568,970    
    $ 1,568,970    
Insured-Private Education — 3.6%      
$ 2,500     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59
  $ 3,153,500    
  2,500     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
    2,643,575    
    $ 5,797,075    
Insured-Public Education — 2.3%      
$ 3,500     College of Charleston, SC, Academic and Administrative
Facilities, (XLCA), 5.125%, 4/1/30
  $ 3,685,535    
    $ 3,685,535    
Insured-Sewer Revenue — 2.4%      
$ 1,100     Marysville, OH, Wastewater Treatment System, (XLCA),
4.75%, 12/1/46
  $ 1,116,995    
  2,575     Tacoma, WA, Sewer Revenue, (FGIC), 5.00%, 12/1/31     2,658,610    
    $ 3,775,605    
Insured-Special Assessment Revenue — 4.3%      
$ 6,500     San Jose, CA, Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32(2)
  $ 6,860,754    
    $ 6,860,754    
Insured-Special Tax Revenue — 4.3%      
$ 4,000     Metropolitan Pier and Exposition Authority, IL, (McCormick
Place Expansion), (MBIA), 5.25%, 6/15/42
  $ 4,273,080    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue (continued)      
$ 2,500     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45
  $ 2,553,300    
    $ 6,826,380    
Insured-Transportation — 24.5%      
$ 1,000     Central, TX, Regional Mobility Authority, (FGIC),
5.00%, 1/1/45
  $ 1,034,010    
  11,900     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/22
    6,137,901    
  2,980     Harris County, TX, (MBIA), 4.50%, 8/15/36     2,943,942    
  13,885     Nevada Department of Business and Industry, (Las Vegas
Monorail-1st Tier), (AMBAC), 0.00%, 1/1/20
    7,980,681    
  10,000     Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42(3)     10,418,000    
  10,000     Triborough Bridge and Tunnel Authority, NY, (MBIA),
5.00%, 11/15/32
    10,509,100    
    $ 39,023,634    
Insured-Utilities — 3.9%      
$ 6,000     Philadelphia, PA, Gas Works Revenue, (FSA),
5.00%, 8/1/32
  $ 6,245,640    
    $ 6,245,640    
Insured-Water and Sewer — 12.5%      
$ 2,240     Atlanta, GA, Water and Sewer, (FGIC),
5.00%, 11/1/38(4)
  $ 2,273,354    
  1,000     Birmingham, AL, Waterworks and Sewer Board, (AMBAC),
4.50%, 1/1/39
    982,510    
  1,000     Birmingham, AL, Waterworks and Sewer Board, (AMBAC),
4.50%, 1/1/43
    974,760    
  1,950     New York City, NY, Municipal Water Finance Authority,
(Water and Sewer System), (AMBAC), 5.00%, 6/15/38
    2,056,158    
  11,390     Pearland, TX, Waterworks and Sewer Systems, (MBIA),
3.50%, 9/1/31
    9,540,947    
  3,825     Pittsburgh, PA, Water and Sewer Authority, (AMBAC),
5.125%, 12/1/27(2)
    4,083,761    
    $ 19,911,490    
Insured-Water Revenue — 28.8%      
$ 4,895     Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39
  $ 5,115,813    
  7,000     Contra Costa, CA, Water District, (FSA), 5.00%, 10/1/32(2)     7,342,207    
  10,350     Detroit, MI, Water Supply System, (MBIA),
5.00%, 7/1/34(2)
    10,757,204    
  6,500     Los Angeles, CA, Department of Water and Power,
Water Revenue, (FGIC), 5.00%, 7/1/43
    6,786,000    

 

See notes to financial statements
13



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water Revenue (continued)      
$ 6,110     Massachusetts Water Resources Authority, (AMBAC),
4.00%, 8/1/40
  $ 5,511,770    
  7,000     Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36     7,389,130    
  2,870     San Antonio, TX, Water Revenue, (FGIC), 5.00%, 5/15/23     3,018,092    
    $ 45,920,216    
Special Tax Revenue — 1.5%      
$ 750     New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/24
  $ 789,578    
  1,480     New Jersey Economic Development Authority,
(Cigarette Tax), 5.75%, 6/15/29
    1,601,020    
    $ 2,390,598    
Total Tax-Exempt Investments — 181.1%
(identified cost $272,957,597)
    $ 288,749,478    
Other Assets, Less Liabilities — (26.2)%       $ (41,826,626 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (54.9)%
      $ (87,508,806 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 159,414,046    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 86.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.5% to 33.4% of total investments.

(1)  When-issued security.

(2)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(3)  Security (or a portion thereof) has been segregated to cover when-issued securities.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(5)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2007, the aggregate value of the securities is $1,528,025 or 1.0% of the Fund's net assets applicable to common shares.

See notes to financial statements
14



Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 173.3%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
General Obligations — 7.0%      
$ 1,650     California, 4.50%, 8/1/30(1)   $ 1,629,952    
  900     California, 5.25%, 4/1/30     958,950    
  1,465     California, 5.50%, 11/1/33     1,596,381    
          $ 4,185,283    
Hospital — 15.8%      
$ 1,850     California Health Facilities Financing Authority, (Cedars-Sinai
Medical Center), 5.00%, 11/15/34
  $ 1,918,764    
  2,940     California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
    3,058,717    
  1,000     California Statewide Communities Development Authority,
(John Muir Health), 5.00%, 8/15/36
    1,044,070    
  1,400     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.00%, 3/1/41
    1,437,968    
  1,900     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.25%, 3/1/45
    1,997,261    
          $ 9,456,780    
Insured-Electric Utilities — 10.8%      
$ 1,475     Glendale Electric, (MBIA), 5.00%, 2/1/32   $ 1,534,192    
  3,300     Puerto Rico Electric Power Authority, (FSA), 5.25%, 7/1/29     3,473,085    
  1,370     Sacramento Municipal Electric Utility District, (FSA),
5.00%, 8/15/28(2)
    1,423,658    
          $ 6,430,935    
Insured-Escrowed / Prerefunded — 12.9%      
$ 740     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, Prerefunded to 7/1/11, (AMBAC),
5.00%, 7/1/31
  $ 782,121    
  2,765     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, Prerefunded to 7/1/11, (AMBAC),
5.125%, 7/1/36
    2,935,905    
  3,790     University of California, Prerefunded to 9/1/10, (FGIC),
5.125%, 9/1/31
    4,008,456    
          $ 7,726,482    
Insured-General Obligations — 53.9%      
$ 8,680     Arcadia Unified School District, (FSA), 0.00%, 8/1/38   $ 1,898,490    
  3,115     Arcadia Unified School District, (FSA), 0.00%, 8/1/40     616,521    
  3,270     Arcadia Unified School District, (FSA), 0.00%, 8/1/41     614,858    
  1,250     California, (AMBAC), 5.00%, 4/1/27     1,306,162    
  1,250     California, (XLCA), 5.00%, 10/1/28(2)     1,300,655    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 19,350     Chabot-Las Positas Community College District, (AMBAC),
0.00%, 8/1/43
  $ 3,202,231    
  5,000     Clovis Unified School District, (FGIC), 0.00%, 8/1/20     2,842,450    
  6,675     Coast Community College District, (FSA), 0.00%, 8/1/35     1,537,453    
  2,350     Long Beach Unified School District, (Election of 1999),
(FSA), 5.00%, 8/1/31
    2,439,159    
  1,945     Los Osos Community Services, Wastewater Assessment
District, (MBIA), 5.00%, 9/2/33
    2,023,189    
  1,000     Mount Diablo Unified School District, (FSA),
5.00%, 8/1/25
    1,051,330    
  1,100     Oakland Unified School District, Alamedia County,
(Election of 2006), (FSA), 4.375%, 8/1/28
    1,087,900    
  2,205     San Diego Unified School District, (MBIA),
5.50%, 7/1/24(2)
    2,570,501    
  4,300     San Mateo County Community College District,
(Election of 2001), (FGIC), 0.00%, 9/1/21
    2,325,053    
  1,750     Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32     1,818,670    
  1,620     Santa Clara Unified School District, (Election of 2004),
(FSA), 4.375%, 7/1/30
    1,601,257    
  1,000     Simi Valley Unified School District, (MBIA), 5.00%, 8/1/28     1,054,200    
  3,200     Union Elementary School District, (FGIC), 0.00%, 9/1/22     1,655,520    
  2,600     Union Elementary School District, (FGIC), 0.00%, 9/1/23     1,282,632    
          $ 32,228,231    
Insured-Lease Revenue / Certificates of
Participation — 20.0%
     
$ 4,000     Anaheim Public Financing Authority Lease Revenue, (FSA),
5.00%, 3/1/37
  $ 4,051,640    
  4,250     California Public Works Board Lease Revenue, (Department of
General Services), (AMBAC), 5.00%, 12/1/27(3)
    4,452,470    
  2,250     Orange County Water District, Certificates of Participation,
(MBIA), 5.00%, 8/15/34
    2,345,693    
  1,075     San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/32
    1,113,571    
          $ 11,963,374    
Insured-Public Education — 7.0%      
$ 4,000     California State University, (AMBAC), 5.00%, 11/1/33   $ 4,198,320    
          $ 4,198,320    
Insured-Special Assessment Revenue — 22.4%      
$ 2,500     Cathedral City Public Financing Authority, (Housing
Redevelopment), (MBIA), 5.00%, 8/1/33(4)
  $ 2,621,000    
  2,500     Cathedral City Public Financing Authority, (Tax Allocation
Redevelopment), (MBIA), 5.00%, 8/1/33
    2,621,000    

 

See notes to financial statements
15



Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Assessment Revenue (continued)      
$ 1,750     Irvine Public Facility and Infrastructure Authority Assessment,
(AMBAC), 5.00%, 9/2/26
  $ 1,809,080    
  2,000     Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32
    2,097,300    
  4,000     San Jose Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32(2)
    4,222,451    
          $ 13,370,831    
Insured-Special Tax Revenue — 4.9%      
$ 260     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31
  $ 270,007    
  985     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36
    1,029,640    
  1,695     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, (FSA), 4.25%, 7/1/36
    1,630,353    
          $ 2,930,000    
Insured-Transportation — 2.6%      
$ 3,670     San Joaquin Hills Transportation Corridor Agency, (MBIA),
0.00%, 1/15/27
  $ 1,529,950    
          $ 1,529,950    
Insured-Utilities — 3.0%      
$ 1,750     Los Angeles Department of Water and Power, (FGIC),
5.125%, 7/1/41
  $ 1,810,393    
          $ 1,810,393    
Insured-Water Revenue — 8.7%      
$ 2,500     Contra Costa Water District, (FSA), 5.00%, 10/1/32(2)   $ 2,622,636    
  1,500     Los Angeles Department of Water and Power,
Water Revenue, (MBIA), 3.00%, 7/1/30
    1,185,900    
  1,475     San Francisco City and County Public Utilities Commission,
(FSA), 4.25%, 11/1/33
    1,423,655    
          $ 5,232,191    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Water Revenue — 4.3%  
$ 2,500     California Water Resource, (Central Valley),
5.00%, 12/1/29
  $ 2,550,175    
      $ 2,550,175    
Total Tax-Exempt Investments — 173.3%
(identified cost $99,014,652)
      $ 103,612,945    
Other Assets, Less Liabilities — (16.9)%       $ (10,082,750 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (56.4)%
      $ (33,759,152 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 59,771,043    

 

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 84.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.3% to 24.7% of total investments.

(1)  When-issued security.

(2)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(4)  Security (or a portion thereof) has been segregated to cover when-issued securities.

See notes to financial statements
16



Eaton Vance Insured Florida Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 167.7%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Hospital — 13.7%      
$ 1,150     Brevard County Health Facilities Authority,
(Health First, Inc.), 5.00%, 4/1/36
  $ 1,186,593    
  500     Highlands County Health Facilities Authority, (Adventist
Glenoaks Hospital/Adventist Healthcare),
5.00%, 11/15/31
    514,980    
  1,050     Highlands County Health Facilities Authority, (Adventist
Health), 5.25%, 11/15/23
    1,129,432    
  1,000     Orange County Health Facilities Authority, (Orlando Regional
Healthcare), 4.75%, 11/15/36
    1,006,950    
  500     Orange County Health Facilities Authority, (Orlando Regional
Healthcare), 5.125%, 11/15/39
    520,640    
  1,000     South Miami Health Facility Authority Hospital Revenue,
(Baptist Health), 5.25%, 11/15/33
    1,046,940    
          $ 5,405,535    
Insured-Electric Utilities — 13.4%      
$ 1,500     Deltona, Utility System Revenue, (MBIA), 5.00%, 10/1/33   $ 1,583,385    
  1,600     Jacksonville Electric Authority, Electric System Revenue,
(FSA), 4.75%, 10/1/34
    1,613,664    
  1,000     Lakeland Energy System, (XLCA), 4.75%, 10/1/36     1,023,430    
  1,000     Puerto Rico Electric Power Authority, (FSA),
5.25%, 7/1/29
    1,052,450    
          $ 5,272,929    
Insured-Escrowed / Prerefunded — 18.1%      
$ 1,025     Dade County, Professional Sports Franchise Facility, (MBIA),
Escrowed to Maturity, 5.25%, 10/1/30
  $ 1,192,372    
  1,500     Miami-Dade County Health Facilities Authority, (Miami
Children's Hospital), (AMBAC), Prerefunded to 8/15/11,
5.125%, 8/15/26
    1,598,010    
  4,675     Port St. Lucie, Utility System Revenue, (MBIA),
Prerefunded to 9/1/13, 0.00%, 9/1/32
    1,281,698    
  2,825     Puerto Rico Highway and Transportation Authority, (MBIA),
Prerefunded to 7/1/16, 5.00%, 7/1/36(3)
    3,097,130    
          $ 7,169,210    
Insured-General Obligations — 8.9%      
$ 2,000     Florida Board of Education, Capital Outlay, (Public Education),
(MBIA), 5.00%, 6/1/32
  $ 2,106,040    
  1,345     Florida Board of Education, Capital Outlay, (Public Education),
(MBIA), 5.00%, 6/1/32
    1,416,312    
          $ 3,522,352    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Hospital — 2.7%      
$ 1,000     Coral Gables Health Facilities Authority, (Baptist Health
System of South Florida), (FSA), 5.00%, 8/15/29
  $ 1,048,620    
          $ 1,048,620    
Insured-Other Revenue — 9.1%      
$ 1,500     Miami-Dade County, (Professional Sports Franchise),
(MBIA), 4.75%, 10/1/30
  $ 1,516,620    
  2,000     Village Center Community Development District, (MBIA),
5.00%, 11/1/32
    2,091,980    
          $ 3,608,600    
Insured-Pooled Loans — 3.8%      
$ 1,520     Florida Municipal Loan Council Revenue, (MBIA),
0.00%, 4/1/23
  $ 767,007    
  1,520     Florida Municipal Loan Council Revenue, (MBIA),
0.00%, 4/1/24
    732,488    
          $ 1,499,495    
Insured-Private Education — 2.6%      
$ 1,000     Broward County Educational Facilities Authority, (Nova
Southeastern University), (AGC), 5.00%, 4/1/36
  $ 1,043,830    
          $ 1,043,830    
Insured-Sewer Revenue — 2.7%      
$ 1,000     Pinellas County, Sewer, (FSA), 5.00%, 10/1/32   $ 1,055,590    
          $ 1,055,590    
Insured-Special Assessment Revenue — 7.3%      
$ 2,780     Julington Creek, Plantation Community Development District,
(MBIA), 5.00%, 5/1/29
  $ 2,891,422    
          $ 2,891,422    
Insured-Special Tax Revenue — 40.9%      
$ 1,000     Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/27   $ 1,070,630    
  1,250     Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/32     1,338,288    
  500     Dade County, Residual Certificates, (AMBAC), Variable Rate,
7.175%, 10/1/35(1)(5)
    517,455    
  1,500     Dade County, Special Obligation, (AMBAC),
5.00%, 10/1/35(3)
    1,517,455    
  1,500     Jacksonville, Capital Improvements, (AMBAC),
5.00%, 10/1/30
    1,554,315    
  3,750     Jacksonville, Transportation Revenue, (MBIA),
5.00%, 10/1/31
    3,861,825    

 

See notes to financial statements
17



Eaton Vance Insured Florida Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue (continued)      
$ 1,275     Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27   $ 1,347,803    
  600     Miami-Dade County, Special Obligation, (MBIA),
0.00%, 10/1/35
    144,936    
  8,000     Miami-Dade County, Special Obligation, (MBIA),
0.00%, 10/1/39
    1,551,760    
  225     Miami-Dade County, Special Obligation, (MBIA),
5.00%, 10/1/37
    229,743    
  2,250     Orange County Tourist Development Tax, (AMBAC),
5.125%, 10/1/30(3)
    2,367,915    
  1,120     Sunrise Public Facilities, (MBIA), 0.00%, 10/1/20     635,589    
          $ 16,137,714    
Insured-Transportation — 10.6%      
$ 1,500     Florida Turnpike Authority, Water & Sewer Revenue,
(Department of Transportation), (FGIC), 4.50%, 7/1/27
  $ 1,501,020    
  1,605     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/24
    758,427    
  1,950     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/25
    879,470    
  1,000     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/26
    430,290    
  580     Puerto Rico Highway and Transportation Authority, (FSA),
5.00%, 7/1/32
    605,381    
          $ 4,174,588    
Insured-Utilities — 6.3%      
$ 1,550     Daytona Beach, Utility System Revenue, (AMBAC),
5.00%, 11/15/32(4)
  $ 1,614,263    
  1,500     Port St. Lucie, Utility System Revenue, (MBIA),
0.00%, 9/1/32
    453,690    
  1,455     Port St. Lucie, Utility System Revenue, (MBIA),
0.00%, 9/1/33
    419,651    
          $ 2,487,604    
Insured-Water and Sewer — 27.6%      
$ 1,000     Emerald Coast, Utility Authority Revenue, (FGIC),
4.75%, 1/1/31
  $ 1,024,040    
  3,580     Fort Lauderdale, Water and Sewer, (MBIA), 4.50%, 9/1/35     3,561,670    
  1,500     Jacksonville Electric Authority, Water and Sewer System,
(MBIA), 4.75%, 10/1/30
    1,526,040    
  2,000     Marco Island Utility System, (MBIA), 5.00%, 10/1/27     2,111,180    
  1,000     Marion County Utility System, (MBIA), 5.00%, 12/1/33     1,056,780    
  1,000     Sunrise Utility System, (AMBAC), 5.00%, 10/1/28     1,074,750    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water and Sewer (continued)  
$ 500     Tampa Bay Water Utility System, (FGIC), Variable Rate
5.53%, 10/1/27(1)(2)
  $ 520,720    
      $ 10,875,180    
Total Tax-Exempt Investments — 167.7%
(identified cost $62,912,345)
      $ 66,192,669    
Other Assets, Less Liabilities — (10.6)%       $ (4,201,110 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (57.1)%
      $ (22,510,633 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 39,480,926    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 91.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 51.7% of total investments.

(1)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2007, the aggregate value of the securities is $1,038,175 or 2.6% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2007.

(3)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(5)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2007.

See notes to financial statements
18



Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 179.7%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Escrowed / Prerefunded — 2.5%      
$ 600     Massachusetts Development Finance Agency, (Western
New England College), Prerefunded to 12/1/12,
6.125%, 12/1/32
  $ 676,830    
          $ 676,830    
Hospital — 9.7%      
$ 1,500     Massachusetts Health and Educational Facilities Authority,
(Partners Healthcare System), 5.75%, 7/1/32
  $ 1,615,815    
  1,000     Massachusetts Health and Educational Facilities Authority,
(South Shore Hospital), 5.75%, 7/1/29
    1,046,200    
          $ 2,662,015    
Housing — 3.6%      
$ 1,000     Massachusetts Housing Finance Agency, 4.50%, 6/1/38   $ 987,550    
          $ 987,550    
Insured-Escrowed / Prerefunded — 32.6%      
$ 2,900     Massachusetts College Building Authority, (MBIA),
Escrowed to Maturity, 0.00%, 5/1/26
  $ 1,289,920    
  1,600     Massachusetts Development Finance Agency, (WGBH
Educational Foundation), (AMBAC), Prerefunded to 1/1/12,
5.375%, 1/1/42
    1,731,712    
  1,000     Puerto Rico Highway and Transportation Authority, (MBIA),
Prerefunded to 7/1/16, 5.00%, 7/1/36(1)
    1,096,982    
  3,000     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    3,195,530    
  1,500     University of Massachusetts Building Authority, (AMBAC),
Prerefunded to 11/1/14, 5.125%, 11/1/34
    1,636,890    
          $ 8,951,034    
Insured-General Obligations — 12.1%      
$ 2,000     Massachusetts, (MBIA), 5.25%, 8/1/28   $ 2,304,680    
  1,000     Milford, (FSA), 4.25%, 12/15/46     950,860    
  75     Sandwich, (MBIA), 4.50%, 7/15/29     76,076    
          $ 3,331,616    
Insured-Hospital — 7.1%      
$ 680     Massachusetts Health and Educational Facilities Authority,
(Lahey Clinic Medical Center), (FGIC), 4.50%, 8/15/35
  $ 676,192    
  1,210     Massachusetts Health and Educational Facilities Authority,
(New England Medical Center), (FGIC), 5.00%, 5/15/25
    1,266,652    
          $ 1,942,844    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Lease Revenue / Certificates of
Participation — 22.2%
     
$ 1,750     Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34
  $ 1,837,272    
  1,000     Plymouth County Correctional Facility, (AMBAC),
5.00%, 4/1/22
    1,038,520    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36(1)
    848,211    
  2,205     Puerto Rico Public Buildings Authority, (CIFG), Prerefunded
to 7/1/12, 5.25%, 7/1/36(1)
    2,370,489    
          $ 6,094,492    
Insured-Other Revenue — 4.5%      
$ 1,000     Massachusetts Development Finance Agency, (WGBH
Educational Foundation), (AMBAC), 5.75%, 1/1/42
  $ 1,244,360    
          $ 1,244,360    
Insured-Pooled Loans — 9.2%      
$ 2,400     Puerto Rico Municipal Finance Agency, (FSA),
5.00%, 8/1/27(1)
  $ 2,512,992    
          $ 2,512,992    
Insured-Private Education — 22.0%      
$ 1,000     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 5.375%, 5/15/39
  $ 1,168,080    
  1,105     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59
    1,393,847    
  750     Massachusetts Development Finance Agency,
(College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)
    874,235    
  1,500     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
    1,586,145    
  750     Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), (AGC),
5.00%, 7/1/35
    779,497    
  250     Massachusetts Industrial Finance Agency, (Tufts University),
(MBIA), 4.75%, 2/15/28
    251,883    
          $ 6,053,687    
Insured-Public Education — 11.3%      
$ 700     Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/39
  $ 840,574    
  1,000     Massachusetts Health and Educational Facilities Authority,
(University of Massachusetts), (FGIC), 5.125%, 10/1/34
    1,057,100    
  1,150     Massachusetts Health and Educational Facilities Authority,
(Worcester State College), (AMBAC), 5.00%, 11/1/32
    1,206,431    
          $ 3,104,105    

 

See notes to financial statements
19



Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue — 10.0%      
$ 1,280     Martha's Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32(2)   $ 1,347,085    
  425     Massachusetts Bay Transportation Authority,
Revenue Assessment, (MBIA), 4.00%, 7/1/33
    392,126    
  1,000     Massachusetts School Building Authority, (AMBAC),
4.50%, 8/15/35
    994,400    
          $ 2,733,611    
Insured-Transportation — 10.1%      
$ 3,700     Massachusetts Turnpike Authority, (MBIA), 0.00%, 1/1/28   $ 1,487,326    
  1,250     Massachusetts Turnpike Authority, Metropolitan Highway
System, (AMBAC), 5.00%, 1/1/39
    1,279,250    
          $ 2,766,576    
Insured-Water and Sewer — 13.4%      
$ 1,175     Massachusetts Water Resources Authority, (AMBAC),
4.00%, 8/1/40
  $ 1,059,956    
  2,500     Massachusetts Water Resources Authority, (FSA),
5.00%, 8/1/32
    2,617,700    
          $ 3,677,656    
Nursing Home — 2.7%      
$ 745     Massachusetts Development Finance Agency, (Berkshire
Retirement Community, Inc./Edgecombe), 5.15%, 7/1/31
  $ 751,780    
          $ 751,780    
Private Education — 6.7%      
$ 500     Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), 5.75%, 7/1/33
  $ 537,200    
  750     Massachusetts Development Finance Agency,
(Middlesex School), 5.00%, 9/1/33
    775,118    
  500     Massachusetts Health and Educational Facilities Authority,
(Boston College), 5.125%, 6/1/24
    525,045    
          $ 1,837,363    
Total Tax-Exempt Investments — 179.7%
(identified cost $46,580,030)
      $ 49,328,511    
Other Assets, Less Liabilities — (23.2)%       $ (6,373,133 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (56.5)%
      $ (15,502,549 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 27,452,829    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 86.0% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 25.2% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements
20



Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 180.2%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Electric Utilities — 5.6%      
$ 1,250     Michigan Strategic Fund, (Detroit Edison Pollution Control),
5.45%, 9/1/29
  $ 1,306,637    
          $ 1,306,637    
Escrowed / Prerefunded — 6.8%      
$ 1,500     Michigan Hospital Finance Authority, (Sparrow Obligation
Group), Prerefunded to 11/15/11, 5.625%, 11/15/36
  $ 1,589,610    
          $ 1,589,610    
Hospital — 13.1%      
$ 400     Michigan Hospital Finance Authority, (Chelsea Community
Hospital), 5.00%, 5/15/30
  $ 409,364    
  1,000     Michigan Hospital Finance Authority, (Oakwood Hospital),
5.75%, 4/1/32
    1,073,540    
  1,500     Michigan Hospital Finance Authority, (Trinity Health),
5.375%, 12/1/30
    1,588,395    
          $ 3,071,299    
Insured-Electric Utilities — 2.2%      
$ 500     Michigan Strategic Fund, Resource Recovery,
(Detroit Edison Co.), (XLCA), 5.25%, 12/15/32
  $ 525,205    
          $ 525,205    
Insured-Escrowed / Prerefunded — 47.1%      
$ 750     Detroit School District, (School Bond Loan Fund),
Prerefunded to 5/1/12, (FSA), 5.125%, 5/1/31
  $ 800,010    
  1,250     Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11,
5.125%, 7/1/31
    1,321,187    
  1,500     Lansing, Building Authority, Prerefunded to 6/1/13,
(MBIA), 5.00%, 6/1/29
    1,579,530    
  1,150     Michigan Hospital Finance Authority, (St. John Health System),
Escrowed to Maturity, (AMBAC), 5.00%, 5/15/28
    1,174,748    
  1,000     Michigan Trunk Line, Prerefunded to 11/1/11, (FSA),
5.00%, 11/1/25
    1,055,850    
  3,275     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    3,489,106    
  1,500     Reed City Public Schools, Prerefunded to 5/1/14, (FSA),
5.00%, 5/1/29
    1,617,135    
          $ 11,037,566    
Insured-General Obligations — 20.7%      
$ 200     Allen Park, Public School District, (FSA), 4.25%, 5/1/29   $ 194,268    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 325     Brandon School District, (FSA), 4.50%, 5/1/35   $ 323,703    
  1,960     Grand Rapids and Kent County, Joint Building Authority,
(Devos Place), (MBIA), 0.00%, 12/1/27
    789,174    
  750     Greenville, Public Schools, (MBIA), 5.00%, 5/1/25     780,570    
  1,330     Okemos, Public School District, (MBIA), 0.00%, 5/1/19     804,783    
  1,000     Otsego, Public School District, (FSA), 4.25%, 5/1/34     960,300    
  1,000     Van Buren Township, (Local Development Authority), (XLCA),
4.50%, 10/1/31
    994,850    
          $ 4,847,648    
Insured-Hospital — 9.3%      
$ 500     Michigan Hospital Finance Authority, Mid-Michigan
Obligation Group, (AMBAC), 5.00%, 4/15/32
  $ 514,905    
  1,590     Royal Oak, Hospital Finance Authority Revenue, (William
Beaumont Hospital), (MBIA), 5.25%, 11/15/35
    1,656,383    
          $ 2,171,288    
Insured-Lease Revenue / Certificates of
Participation — 27.4%
     
$ 1,750     Michigan House of Representatives, (AMBAC),
0.00%, 8/15/22
  $ 905,730    
  2,615     Michigan House of Representatives, (AMBAC),
0.00%, 8/15/23
    1,292,516    
  3,100     Michigan State Building Authority, (FGIC), 0.00%, 10/15/30     992,589    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36(1)
    848,211    
  2,205     Puerto Rico Public Buildings Authority, (CIFG),
Prerefunded to 7/1/12, 5.25%, 7/1/36(1)
    2,370,489    
          $ 6,409,535    
Insured-Public Education — 10.2%      
$ 1,500     Central Michigan University, (AMBAC), 5.05%, 10/1/32(2)   $ 1,589,400    
  750     Lake Superior State University, (AMBAC), 5.125%, 11/15/26     786,593    
          $ 2,375,993    
Insured-Special Tax Revenue — 11.1%      
$ 1,500     Wayne Charter County, (Airport Hotel-Detroit
Metropolitan Airport), (MBIA), 5.00%, 12/1/30
  $ 1,562,580    
  1,000     Ypsilanti, Community Utilities Authority, (San Sewer System),
(FGIC), 5.00%, 5/1/32
    1,045,110    
          $ 2,607,690    

 

See notes to financial statements
21



Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Utility — 6.8%      
$ 1,000     Lansing, Board Water Supply, Steam and Electric Utility,
(FSA), 5.00%, 7/1/25
  $ 1,056,480    
  510     Lansing, Board Water Supply, Steam and Electric Utility,
(FSA), 5.00%, 7/1/26
    537,362    
          $ 1,593,842    
Insured-Water Revenue — 17.7%      
$ 2,400     Detroit, MI, Water Supply System, (MBIA),
5.00%, 7/1/34(1)
  $ 2,494,424    
  1,600     Detroit, Water Supply System, (FGIC), 5.00%, 7/1/30     1,647,072    
          $ 4,141,496    
Private Education — 2.2%      
$ 500     Michigan Higher Education Facilities Authority,
(Hillsdale College), 5.00%, 3/1/35
  $ 514,555    
          $ 514,555    
Total Tax-Exempt Investments — 180.2%
(identified cost $39,911,650)
      $ 42,192,364    
Other Assets, Less Liabilities — (22.5)%       $ (5,267,160 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (57.7)%
      $ (13,504,659 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 23,420,545    

 

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 84.6% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 3.6% to 22.9% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements
22




Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 176.1%      
Principal Amount
(000's omitted)
  Security   Value  
Hospital — 11.2%      
$ 100     Camden County Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
  $ 103,280    
  180     Camden County Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    184,343    
  150     Camden County Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    157,687    
  1,300     Camden County Improvement Authority,
(Cooper Health System), 5.75%, 2/15/34
    1,396,317    
  610     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.375%, 7/1/33
    637,413    
  575     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.75%, 7/1/23
    618,286    
  250     New Jersey Health Care Facilities Financing Authority,
(Hunterdon Medical Center), 5.125%, 7/1/35
    260,835    
  600     New Jersey Health Care Facilities Financing Authority,
(South Jersey Hospital), 5.00%, 7/1/36
    620,850    
  600     New Jersey Health Care Facilities Financing Authority,
(South Jersey Hospital), 5.00%, 7/1/46
    617,562    
            $ 4,596,573    
Insured-Escrowed / Prerefunded — 25.8%      
$ 1,500     Bordentown Regional School District Board of Education,
(FGIC), Prerefunded to 1/15/12, 5.00%, 1/15/30(2)
  $ 1,601,160    
  1,500     New Jersey Educational Facilities Authority,
(Rowan University), (FGIC), Prerefunded to
7/1/13, 5.125%, 7/1/30
    1,619,565    
  1,500     Newark Housing Authority, (Newark Marine Terminal),
(MBIA), Prerefunded to 1/1/14, 5.00%, 1/1/37
    1,610,400    
  800     Newark, Housing Authority, (Newark Marine Terminal),
(MBIA), Prerefunded to 1/1/14, 5.00%, 1/1/23
    858,880    
  4,645     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    4,948,071    
            $ 10,638,076    
Insured-General Obligations — 33.8%      
$ 2,260     Bayonne, (FSA), 0.00%, 7/1/22   $ 1,191,721    
  2,415     Bayonne, (FSA), 0.00%, 7/1/23     1,215,325    
  1,000     Bordentown Regional School District Board of Education,
(MBIA), 4.25%, 1/15/33
    971,690    
  250     Egg Harbor Township School District, (FSA),
3.50%, 4/1/28
    221,725    
  2,000     Hudson County Improvement Authority, (MBIA),
0.00%, 12/15/38
    480,260    
  5,500     Irvington Township, (FSA), 0.00%, 7/15/26     2,393,270    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 2,960     Jackson Township, School District, (MBIA),
2.50%, 6/15/27
  $ 2,226,986    
  1,250     Jersey City, (FSA), 5.25%, 9/1/23     1,344,225    
  530     Madison Borough, Board of Education, (MBIA),
4.75%, 7/15/35
    548,513    
  350     Monroe Township Board of Education Middlesex County,
(MBIA), 4.50%, 4/1/33
    351,414    
  1,000     Old Bridge Township Board of Education,
(MBIA), 4.375%, 7/15/32
    999,180    
  500     Sparta Township Board of Education, (FSA),
4.30%, 2/15/33
    494,205    
  1,500     Sparta Township School District, (FSA),
4.30%, 2/15/34
    1,482,030    
            $ 13,920,544    
Insured-Hospital — 11.3%      
$ 875     New Jersey Health Care Facilities Financing Authority,
(Central State Medical Center), (AGC), 4.50%, 7/1/37
  $ 862,837    
  2,750     New Jersey Health Care Facilities Financing Authority,
(Englewood Hospital), (MBIA), 5.00%, 8/1/31
    2,852,052    
  900     New Jersey Health Care Facilities Financing Authority,
(Jersey City Medical Center), (AMBAC), 5.00%, 8/1/41
    925,560    
            $ 4,640,449    
Insured-Lease Revenue / Certificates of
Participation — 20.0%
     
$ 445     Gloucester County Improvements Authority, (MBIA),
4.75%, 9/1/30
  $ 460,117    
  2,670     Lafayette Yard, Community Development Corporation,
(Hotel and Conference Center), (FGIC), 5.00%, 4/1/35
    2,744,466    
  1,250     Middlesex County, (MBIA), 5.00%, 8/1/31     1,287,450    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36(1)
    848,211    
  2,205     Puerto Rico Public Buildings Authority, (CIFG),
Prerefunded to 7/1/12, 5.25%, 7/1/36(1)
    2,370,489    
  475     University of New Jersey Medicine and Dentistry,
Certificates of Participation, (MBIA), 5.00%, 6/15/36
    498,546    
            $ 8,209,279    
Insured-Pooled Loans — 7.3%      
$ 2,850     Puerto Rico Municipal Finance Agency, (FSA),
5.00%, 8/1/27(1)
  $ 2,984,178    
            $ 2,984,178    

 

See notes to financial statements
23



Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Private Education — 2.6%      
$ 1,000     New Jersey Educational Facilities Authority,
(Kean University), (FGIC), 5.00%, 7/1/28
  $ 1,054,210    
            $ 1,054,210    
Insured-Public Education — 20.1%      
$ 1,200     New Jersey Economic Development Authority,
(School Facilities), (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/33
  $ 1,274,664    
  1,150     New Jersey Educational Facilities Authority,
(Ramapo College), (AMBAC), 4.25%, 7/1/27
    1,132,267    
  1,000     New Jersey Educational Facilities Authority,
(Ramapo College), (AMBAC), 4.25%, 7/1/31
    974,080    
  700     New Jersey Educational Facilities Authority,
(Rowan University), (MBIA), 4.50%, 7/1/31
    700,742    
  3,990     University of New Jersey Medicine and Dentistry,
(AMBAC), 5.00%, 4/15/32
    4,199,994    
            $ 8,281,747    
Insured-Sewer Revenue — 5.5%      
$ 1,720     Passaic Valley, Sewer Commissioners, (FGIC),
2.50%, 12/1/32
  $ 1,225,724    
  2,500     Rahway Valley Sewerage Authority, (MBIA),
0.00%, 9/1/27
    1,027,950    
            $ 2,253,674    
Insured-Transportation — 17.6%      
$ 3,875     Port Authority of New York and New Jersey, (FSA),
5.00%, 11/1/27(1)
  $ 4,101,898    
  1,000     Puerto Rico Highway and Transportation Authority,
(MBIA), 5.00%, 7/1/33
    1,046,610    
  2,000     South Jersey, Transportation Authority, (FGIC),
5.00%, 11/1/33
    2,107,600    
            $ 7,256,108    
Insured-Water and Sewer — 5.2%      
$ 4,500     Middlesex County, Improvements Authority
Utilities System, (Perth Amboy), (AMBAC),
0.00%, 9/1/24
  $ 2,144,655    
            $ 2,144,655    
Private Education — 3.2%      
$ 1,250     New Jersey Educational Facilities Authority,
(Stevens Institute of Technology), 5.25%, 7/1/32
  $ 1,310,225    
            $ 1,310,225    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Senior Living / Life Care — 1.5%      
$ 600     New Jersey Economic Development Authority,
(Fellowship Village), 5.50%, 1/1/25
  $ 609,192    
            $ 609,192    
Special Tax Revenue — 3.2%      
$ 500     New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/31
  $ 530,390    
  750     New Jersey Economic Development Authority,
(Cigarette Tax), 5.75%, 6/15/34
    807,015    
            $ 1,337,405    
Transportation — 7.8%      
$ 1,250     Port Authority of New York and New Jersey,
5.00%, 9/1/38
  $ 1,312,763    
  1,825     South Jersey Port Authority, (Marine Terminal),
5.10%, 1/1/33
    1,894,168    
            $ 3,206,931    
Total Tax-Exempt Investments — 176.1%
(identified cost $68,642,582)
      $ 72,443,246    
Other Assets, Less Liabilities — (21.4)%       $ (8,800,151 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (54.7)%
      $ (22,509,552 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 41,133,543    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 84.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.2% to 22.9% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements
24



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 165.6%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 1.8%      
$ 665     Long Island Power Authority, Electric System Revenue,
5.00%, 12/1/35
  $ 699,154    
            $ 699,154    
General Obligations — 8.3%      
$ 1,000     New York, 5.00%, 6/1/30   $ 1,050,200    
  1,650     New York, 5.25%, 1/15/28     1,745,535    
  500     New York City, 5.25%, 8/15/26     534,450    
            $ 3,330,185    
Hospital — 2.0%      
$ 750     Suffolk County Industrial Development Agency,
(Huntington Hospital), 5.875%, 11/1/32
  $ 797,168    
            $ 797,168    
Insured-Electric Utilities — 5.9%      
$ 2,250     Long Island Power Authority, (AMBAC), 5.00%, 9/1/34   $ 2,360,430    
            $ 2,360,430    
Insured-Escrowed / Prerefunded — 11.0%      
$ 515     New York Dormitory Authority, (University of Rochester),
(MBIA), Prerefunded 7/1/08, 5.00%, 7/1/27
  $ 528,941    
  580     New York City Cultural Resource Trust, (Museum of History),
(AMBAC), Prerefunded to 7/1/09,
Variable Rate, 9.349%, 7/1/29(3)(4)
    676,790    
  1,500     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    1,597,765    
  1,500     Sachem School District, Economically Defeased to 2013,
(MBIA), 5.00%, 6/15/27
    1,611,930    
            $ 4,415,426    
Insured-General Obligations — 5.9%      
$ 2,245     New York Dormitory Authority, (School Districts
Financing Program), (MBIA), 5.00%, 10/1/30
  $ 2,357,160    
            $ 2,357,160    
Insured-Lease Revenue / Certificates of
Participation — 17.9%
     
$ 4,000     Hudson Yards Infrastructure Corp., (MBIA),
4.50%, 2/15/47
  $ 3,955,160    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36(1)
    848,211    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Lease Revenue / Certificates of
Participation — (continued)
     
$ 2,205     Puerto Rico Public Buildings Authority, (CIFG),
Prerefunded to 7/01/12, 5.25%, 7/1/36(1)
  $ 2,370,490    
            $ 7,173,861    
Insured-Other Revenue — 24.0%      
$ 1,930     New York City Cultural Resource Trust, (American
Museum of Natural History), (MBIA), 5.00%, 7/1/44
  $ 2,017,197    
  2,000     New York City Cultural Resource Trust,
(Museum of Modern Art), (AMBAC), 5.125%, 7/1/31
    2,113,280    
  2,000     New York City Industrial Development Agency,
(Queens Baseball Stadium), (AMBAC), 4.75%, 1/1/42
    2,050,900    
  1,550     New York City Industrial Development Agency,
(Yankee Stadium), (FGIC), 4.50%, 3/1/39
    1,537,740    
  1,825     New York City Industrial Development Agency,
(Yankee Stadium), (MBIA), 4.75%, 3/1/46
    1,869,512    
            $ 9,588,629    
Insured-Private Education — 25.0%      
$ 110     New York Dormitory Authority, (University of Rochester),
(MBIA), 5.00%, 7/1/27
  $ 112,534    
  1,000     New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/31
    1,031,780    
  2,500     New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30
    2,626,550    
  2,265     New York Dormitory Authority, (FIT Student
Housing Corp.), (FGIC), 5.00%, 7/1/29
    2,385,090    
  605     New York Dormitory Authority, (Fordham University),
(FGIC), 5.00%, 7/1/32
    633,369    
  1,000     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31
    1,031,780    
  500     New York Dormitory Authority, (Skidmore College),
(FGIC), 5.00%, 7/1/33
    525,235    
  5,425     Oneida County Industrial Development Agency,
(Hamilton College), (MBIA), 0.00%, 7/1/32
    1,671,822    
            $ 10,018,160    
Insured-Public Education — 4.3%      
$ 1,500     New York Dormitory Authority, (City University),
(AMBAC), 5.25%, 7/1/30
  $ 1,716,480    
            $ 1,716,480    
Insured-Special Tax Revenue — 4.1%      
$ 700     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45
  $ 714,924    

 

See notes to financial statements
25



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue — (continued)      
$ 400     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44
  $ 420,332    
  1,700     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/35
    486,472    
            $ 1,621,728    
Insured-Transportation — 25.2%      
$ 2,000     Metropolitan Transportation Authority, Transportation
Revenue Bonds, (FGIC), 5.25%, 11/15/31
  $ 2,138,220    
  2,500     Port Authority of New York and New Jersey, (FSA),
5.00%, 11/1/27(1)
    2,646,868    
  2,000     Puerto Rico Highway and Transportation Authority,
(MBIA), 5.00%, 7/1/33
    2,093,220    
  1,000     Puerto Rico Highway and Transportation Authority,
Variable Rate, (AMBAC), 6.065%, 7/1/28(3)(4)
    1,081,020    
  2,000     Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32
    2,101,820    
            $ 10,061,148    
Insured-Water and Sewer — 14.2%      
$ 3,000     New York City Municipal Water Finance Authority,
(AMBAC), 5.00%, 6/15/38(2)
  $ 3,163,320    
  2,400     Niagara Falls Public Water Authority and Sewer System,
(MBIA), 5.00%, 7/15/34
    2,533,560    
            $ 5,696,880    
Insured-Water Revenue — 4.3%      
$ 1,740     New York Environmental Facilities Corp., (MBIA),
4.25%, 6/15/28
  $ 1,702,973    
            $ 1,702,973    
Other Revenue — 1.5%      
$ 500     Puerto Rico Infrastructure Financing Authority,
Variable Rate, 6.477%, 10/1/32(3)(4)
  $ 604,965    
            $ 604,965    
Private Education — 5.2%      
$ 1,000     Dutchess County, Industrial Development Agency,
(Marist College), 5.00%, 7/1/22
  $ 1,038,240    
  1,000     New York City Industrial Development Agency,
(St. Francis College), 5.00%, 10/1/34
    1,038,510    
            $ 2,076,750    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Transportation — 2.6%      
$ 1,000     Port Authority of New York and New Jersey,
5.00%, 9/1/38
  $ 1,050,210    
            $ 1,050,210    
Water and Sewer — 2.4%      
$ 950     New York State Environmental Facilities Corp.,
Clean Water, (Municipal Water Finance),
4.50%, 6/15/36
  $ 951,007    
            $ 951,007    
Total Tax-Exempt Investments
(identified cost $63,443,447)
      $ 66,222,314    
Short-Term Investments — 1.6%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
$ 645     Puerto Rico Highway and Transportation
Authority, (AMBAC), 3.64%, 1/1/19
  $ 645,000    
Total Short-Term Investments
(at amortized cost, $645,000)
      $ 645,000    
Total Investments — 167.2%
(identified cost $64,088,447)
      $ 66,867,314    
Other Assets, Less Liabilities — (10.9)%       $ (4,358,235 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (56.3)%
      $ (22,505,161 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 40,003,918    

 

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 85.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The

See notes to financial statements
26



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

aggregate percentage insured by an individual financial institution ranged from 3.9% to 33.7% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(3)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2007, the aggregate value of the securities is $2,362,775 or 5.9% of the Fund's net assets applicable to common shares.

(4)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2007.

See notes to financial statements
27



Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 166.6%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 2.7%      
$ 1,000     Puerto Rico Electric Power Authority, 5.125%, 7/1/29   $ 1,045,580    
            $ 1,045,580    
Escrowed / Prerefunded — 0.5%      
$ 179     Ohio Higher Educational Facilities Authority,
(Oberlin College), Prerefunded to 10/1/09,
5.00%, 10/1/29(1)
  $ 183,797    
            $ 183,797    
Hospital — 6.4%      
$ 900     Cuyahoga County, (Cleveland Clinic Health System),
5.50%, 1/1/29
  $ 961,398    
  500     Miami, (Upper Valley Medical Center), 5.25%, 5/15/26     528,165    
  1,000     Ohio Higher Educational Facilities Authority, (University
Hospital Health Systems, Inc.), 4.75%, 1/15/46
    996,410    
            $ 2,485,973    
Insured-Electric Utilities — 20.8%      
$ 1,500     Ohio Air Quality Development Authority,
(Dayton Power & Light Co.), (FGIC), 4.80%, 1/1/34
  $ 1,535,730    
  4,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/25
    1,840,560    
  1,775     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/26
    779,154    
  5,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/27
    2,097,050    
  1,800     Puerto Rico Electric Power Authority, (MBIA),
4.75%, 7/1/33(1)
    1,851,336    
            $ 8,103,830    
Insured-Escrowed / Prerefunded — 27.7%      
$ 420     Cleveland, Airport System, (FSA), Prerefunded to 1/1/10,
5.00%, 1/1/31
  $ 438,782    
  1,500     Columbus, School District, (FSA), Prerefunded to 12/1/14,
5.00%, 12/1/32
    1,624,620    
  2,500     Olentangy, School District, (School Facility Construction
and Improvements), (MBIA), Prerefunded to 12/1/12,
5.00%, 12/1/30
    2,669,600    
  2,500     Springboro, Community School District, (MBIA),
Prerefunded to 6/1/14, 5.00%, 12/1/32
    2,697,175    
  2,600     Trotwood-Madison, City School District,
(School Improvements), (FGIC), Prerefunded to 12/1/12,
5.00%, 12/1/30
    2,776,384    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Escrowed / Prerefunded (continued)      
$ 500     University of Akron, (FGIC), Prerefunded to 1/1/10,
Variable Rate, 7.53%, 1/1/29(2)(3)
  $ 564,195    
            $ 10,770,756    
Insured-General Obligations — 24.6%      
$ 1,500     Ashtabula, School District, (Construction Improvements),
(FGIC), 5.00%, 12/1/30(4)
  $ 1,574,565    
  1,000     Cleveland, Municipal School District, (FSA),
5.00%, 12/1/27
    1,051,870    
  2,075     Cuyahoga, Community College District, (AMBAC),
5.00%, 12/1/32
    2,192,819    
  1,100     Olentangy, School District, (FSA), 4.50%, 12/1/32     1,101,221    
  2,400     Plain, School District, (FGIC), 0.00%, 12/1/27     922,632    
  500     Tecumseh, School District, (FGIC), 4.75%, 12/1/31     514,045    
  420     Trotwood-Madison, City School District,
(School Improvements), (FSA), 4.50%, 12/1/30
    421,121    
  750     Wauseon, Exempt Village School District,
(Classroom Facilities and School Improvements), (FSA),
4.25%, 12/1/34
    721,028    
  1,000     Zanesville, School District, (School Improvements),
(MBIA), 5.05%, 12/1/29
    1,061,250    
            $ 9,560,551    
Insured-Hospital — 6.8%      
$ 1,000     Hamilton County, (Cincinnati Children's Hospital),
(FGIC), 5.00%, 5/15/32
  $ 1,042,830    
  1,500     Hamilton County, (Cincinnati Children's Hospital),
(FGIC), 5.125%, 5/15/28
    1,582,245    
            $ 2,625,075    
Insured-Lease Revenue / Certificates of
Participation — 14.2%
     
$ 1,000     Cleveland, (Cleveland Stadium), (AMBAC),
5.25%, 11/15/27
  $ 1,027,350    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36(1)
    848,211    
  2,205     Puerto Rico Public Buildings Authority, (CIFG),
Prerefunded to 7/01/12, 5.25%, 7/1/36(1)
    2,370,489    
  235     Puerto Rico Public Buildings Authority, Government
Facilities Revenue, (XLCA), 5.25%, 7/1/36
    250,729    
  1,000     Summit County, (Civic Theater Project), (AMBAC),
5.00%, 12/1/33
    1,032,900    
            $ 5,529,679    

 

See notes to financial statements
28



Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Pooled Loans — 2.3%      
$ 850     Puerto Rico Municipal Finance Agency, (FSA),
5.00%, 8/1/27
  $ 889,547    
            $ 889,547    
Insured-Public Education — 14.1%      
$ 3,000     Cincinnati, Technical and Community College, (AMBAC),
5.00%, 10/1/28
  $ 3,166,770    
  1,170     Ohio University, (FSA), 5.25%, 12/1/23     1,262,617    
  1,000     University of Cincinnati, (AMBAC), 5.00%, 6/1/31     1,049,710    
            $ 5,479,097    
Insured-Sewer Revenue — 2.9%      
$ 1,100     Marysville Wastewater Treatment System, (XLCA),
4.75%, 12/1/46
  $ 1,116,995    
            $ 1,116,995    
Insured-Special Tax Revenue — 13.1%      
$ 4,315     Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/22   $ 2,205,267    
  5,000     Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/23     2,440,250    
  1,000     Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/24     465,870    
            $ 5,111,387    
Insured-Transportation — 13.4%      
$ 3,580     Cleveland, Airport System, (FSA), 5.00%, 1/1/31(5)   $ 3,670,144    
  500     Puerto Rico Highway and Transportation Authority,
(CIFG), 5.25%, 7/1/41
    578,720    
  885     Puerto Rico Highway and Transportation Authority,
Variable Rate, (AMBAC), 6.065%, 7/1/28(2)(5)
    956,703    
            $ 5,205,567    
Pooled Loans — 7.2%      
$ 1,500     Cuyahoga County Port Authority, (Garfield Heights),
5.25%, 5/15/23
  $ 1,544,295    
  1,140     Rickenbacker Port Authority, 5.375%, 1/1/32     1,258,009    
            $ 2,802,304    
Private Education — 9.9%      
$ 850     Ohio Higher Educational Facilities Authority,
(John Carroll University), 5.25%, 11/15/33
  $ 900,354    
  1,821     Ohio Higher Educational Facilities Authority,
(Oberlin College), 5.00%, 10/1/29(1)
    1,897,653    
  1,000     Ohio Higher Educational Facilities Authority,
(Oberlin College), 5.00%, 10/1/33
    1,042,510    
            $ 3,840,517    
Total Tax-Exempt Investments
(identified cost $60,984,259)
      $ 64,750,655    

 

Short-Term Investments — 1.5%  
Principal Amount
(000's omitted)
  Security   Value  
$ 570     Puerto Rico Highway and Transportation
Authority, (AMBAC), Variable Rate, 3.64%, 1/1/19
  $ 570,000    
Total Short-Term Investments
(at amortized cost, $570,000)
      $ 570,000    
Total Investments — 168.1%
(identified cost $60,984,259)
      $ 65,320,655    
Other Assets, Less Liabilities — (11.8)%       $ (4,582,623 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (56.3)%
      $ (21,873,082 )  
Net Assets Applicable to
Common Shares — 100.0%
      $ 38,864,950    

 

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 84.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.1% to 23.1% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2007, the aggregate value of the securities is $1,520,898 or 3.9% of the net assets applicable to common shares.

(3)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2007.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(5)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2007.

See notes to financial statements
29



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 179.0%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 1.5%      
$ 650     Puerto Rico Electric Power Authority,
5.125%, 7/1/29(1)
  $ 679,630    
            $ 679,630    
Escrowed / Prerefunded — 1.8%      
$ 750     Lancaster County, Hospital Authority,
Escrowed to 9/15/13, 5.50%, 3/15/26
  $ 824,872    
            $ 824,872    
Hospital — 10.3%      
$ 1,000     Lancaster County, Hospital Authority,
(Lancaster General Hospital), 4.50%, 3/15/36
  $ 981,240    
  350     Lebanon County, Health Facility Authority,
(Good Samaritan Hospital), 6.00%, 11/15/35
    379,991    
  1,500     Lehigh County, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32
    1,582,470    
  750     Pennsylvania Higher Educational Facilities Authority,
(UPMC Health System), 6.00%, 1/15/31
    811,170    
  1,000     Philadelphia Hospitals and Higher Education Facilities
Authority, (Children's Hospital), 4.50%, 7/1/37
    973,330    
            $ 4,728,201    
Insured-Electric Utilities — 9.0%      
$ 3,615     Lehigh County Industrial Development Authority,
(PPL Electric Utilities Corp.), (FGIC), 4.75%, 2/15/27
  $ 3,704,327    
  400     Puerto Rico Electric Power Authority, (FSA),
Variable Rate, 7.90%, 7/1/29(2)(3)
    462,940    
            $ 4,167,267    
Insured-Escrowed / Prerefunded — 21.9%      
$ 1,000     Butler School District, (FSA), Prerefunded to 4/1/14,
5.00%, 4/1/31
  $ 1,077,320    
  1,415     Pennridge School District, (MBIA), Prerefunded to 2/15/13,
5.00%, 2/15/29
    1,510,895    
  585     Pennridge School District, (MBIA), Prerefunded to 2/15/13,
5.00%, 2/15/29
    624,645    
  2,500     Pennsylvania Higher Educational Facilities Authority,
(Temple University), (MBIA), Prerefunded to 4/1/08,
5.00%, 4/1/29(4)
    2,558,175    
  1,355     Philadelphia Natural Gas Works, (FSA),
Prerefunded to 8/1/11, 5.125%, 8/1/31
    1,431,354    
  1,200     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    1,278,212    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Escrowed / Prerefunded (continued)      
$ 270     Southcentral General Authority, (MBIA), Escrowed to
Maturity, 5.25%, 5/15/31
  $ 287,010    
  1,230     Southcentral General Authority, (MBIA),
Prerefunded to 5/1/11, 5.25%, 5/15/31
    1,312,595    
            $ 10,080,206    
Insured-General Obligations — 24.8%      
$ 1,650     Armstrong County, (MBIA), 5.40%, 6/1/31(5)   $ 1,746,245    
  500     Canon McMillan School District, (FGIC), 5.25%, 12/1/34     534,010    
  1,000     Erie School District, (AMBAC), 0.00%, 9/1/30     357,560    
  1,000     Gateway School District, Alleghany County, (FGIC),
5.00%, 10/15/32
    1,055,860    
  2,555     McKeesport School District, (MBIA), 0.00%, 10/1/21     1,372,699    
  1,120     Norwin School District, (FSA), 4.50%, 4/1/35(6)     1,115,576    
  1,750     Philadelphia, (FSA), 5.00%, 9/15/31(1)     1,798,420    
  500     Philadelphia, (FSA), 5.00%, 9/15/31     513,795    
  1,000     Pine-Richland School District, (FSA), 5.00%, 9/1/29     1,033,070    
  2,550     Shaler Area School District, (XLCA), 0.00%, 9/1/33     788,970    
  1,060     Upper Clair Township, School District, (FSA),
5.00%, 7/15/32
    1,109,523    
            $ 11,425,728    
Insured-Hospital — 2.2%      
$ 1,000     Washington County Hospital Authority, (Washington Hospital),
(AMBAC), 5.125%, 7/1/28
  $ 1,022,450    
            $ 1,022,450    
Insured-Industrial Development Revenue — 3.9%      
$ 1,700     Allegheny County Industrial Development Authority,
(MBIA), 5.00%, 11/1/29
  $ 1,809,225    
            $ 1,809,225    
Insured-Lease Revenue / Certificates of
Participation — 10.1%
     
$ 1,300     Philadelphia, Authority for Industrial Development
Lease Revenue, (FSA), 5.125%, 10/1/26
  $ 1,371,799    
  1,700     Philadelphia, Authority for Industrial Development
Lease Revenue, (FSA), 5.25%, 10/1/30
    1,792,004    
  1,500     State Public School Building Authority, (School District
Philadelphia), (FSA), 4.50%, 6/1/36
    1,481,895    
            $ 4,645,698    

 

See notes to financial statements
30



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Private Education — 17.9%      
$ 1,000     Chester County, Industrial Development Authority
Educational Facility, (Westtown School), (AMBAC),
5.00%, 1/1/31
  $ 1,042,390    
  3,315     Delaware County, (Villanova University), (MBIA),
5.00%, 12/1/28
    3,398,803    
  1,485     Pennsylvania Higher Education Facilities Authority,
(Thomas Jefferson University), (AMBAC), 4.25%, 9/1/31
    1,435,624    
  1,900     Pennsylvania Higher Educational Facilities Authority,
(Temple University), (MBIA), 4.50%, 4/1/36
    1,892,362    
  500     Pennsylvania Higher Educational Facilities Authority,
(University of Pennsylvania), (MBIA), 4.50%, 6/15/36
    497,955    
            $ 8,267,134    
Insured-Public Education — 7.8%      
$ 2,400     Lycoming County, College Authority, (Pennsylvania
College of Technology), (AMBAC), 5.25%, 5/1/32
  $ 2,548,080    
  1,000     Pennsylvania Higher Educational Facilities Authority,
(Clarion University Foundation), (XLCA), 5.00%, 7/1/33
    1,039,900    
            $ 3,587,980    
Insured-Special Tax Revenue — 9.7%      
$ 4,350     Pittsburgh and Allegheny County Public Auditorium Authority,
(AMBAC), 5.00%, 2/1/29(5)
  $ 4,484,894    
            $ 4,484,894    
Insured-Transportation — 25.1%      
$ 2,000     Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25   $ 2,093,540    
  1,000     Allegheny County, Port Authority, (FGIC), 5.00%, 3/1/29     1,036,670    
  800     Pennsylvania Turnpike Commission, (FSA),
5.25%, 7/15/27(1)
    930,684    
  2,050     Pennsylvania Turnpike Commission, (FSA),
5.25%, 7/15/29(1)
    2,362,985    
  2,100     Puerto Rico Highway and Transportation Authority, (CIFG),
5.25%, 7/1/41(1)
    2,445,282    
  1,500     Puerto Rico Highway and Transportation Authority, (MBIA),
Prerefunded to 7/1/16, 5.00%, 7/1/36(1)
    1,644,753    
  950     Puerto Rico Highway and Transportation Authority, (MBIA),
Prerefunded to 7/1/16, 5.00%, 7/1/36(1)
    1,041,189    
            $ 11,555,103    
Insured-Water and Sewer — 22.1%      
$ 1,000     Ambridge Borough, Municipal Authority, (FSA),
4.60%, 10/15/41
  $ 1,000,670    
  1,555     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25     691,260    
  2,155     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25     957,984    
  1,920     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26     814,099    
  1,500     Pennsylvania University Sewer Authority, (MBIA),
5.00%, 11/1/26
    1,553,640    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water and Sewer (continued)      
  3,000     Philadelphia, Water and Wastewater, (FGIC),
5.00%, 11/1/31(1)
    3,139,580    
  1,750     Pittsburgh, Water and Sewer Authority, (AMBAC),
5.125%, 12/1/27(1)
    1,867,711    
  150     Saxonburg Water and Sewer Authority, (AGC),
5.00%, 3/1/35
    157,877    
            $ 10,182,821    
Private Education — 6.6%      
$ 3,000     Pennsylvania Higher Educational Facilities Authority,
(University of Pennsylvania), 4.75%, 7/15/35
  $ 3,064,770    
            $ 3,064,770    
Senior Living / Life Care — 1.1%      
$ 200     Montgomery County, Industrial Development Authority,
(Foulkeways at Gwynedd), 5.00%, 12/1/24
  $ 206,522    
  300     Montgomery County, Industrial Development Authority,
(Foulkeways at Gwynedd), 5.00%, 12/1/30
    309,102    
            $ 515,624    
Transportation — 3.2%      
$ 1,400     Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/28
  $ 1,451,968    
            $ 1,451,968    
Total Tax-Exempt Investments — 179.0%
(identified cost $78,901,016)
      $ 82,493,571    
Other Assets, Less Liabilities — (22.6)%       $ (10,407,586 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (56.4)%
      $ (26,004,413 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 46,081,572    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to

See notes to financial statements
31



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2007, 86.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.2% to 25.8% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2007, the aggregate value of the securities is $462,940 or 1.0% of the Fund's net assets applicable to common shares.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2007.

(4)  Security (or a portion thereof) has been segregated to cover margin requirement on open financial future contracts.

(5)  Security (or a portion thereof) has been segregated to cover when-issued securities.

(6)  When-issued security.

See notes to financial statements
32




Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited)

Statement of Assets and Liabilities

As of March 31, 2007

    Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
Assets  
Investments —  
Identified cost   $ 272,957,597     $ 99,014,652     $ 62,912,345    
Unrealized appreciation     15,791,881       4,598,293       3,280,324    
Investments, at value   $ 288,749,478     $ 103,612,945     $ 66,192,669    
Receivable for investments sold   $     $     $ 441,073    
Receivable from the transfer agent     25,683                
Interest receivable     3,618,687       954,397       1,041,002    
Receivable for daily variation margin on open financial futures contracts     94,063       21,563       11,563    
Total assets   $ 292,487,911     $ 104,588,905     $ 67,686,307    
Liabilities  
Payable for floating rate notes issued   $ 39,570,000     $ 7,550,000     $ 4,385,000    
Interest expense and fees payable     511,561       84,677       51,065    
Payable for open interest rate swap contracts     37,324       14,641       9,782    
Payable for when-issued securities     4,949,000       1,633,170          
Due to custodian     345,944       1,701,096       1,187,114    
Payable to affiliate for Trustees' fees           7          
Payable to affiliate for investment advisory fees     84,441       31,980       21,161    
Accrued expenses     66,789       43,139       40,626    
Total liabilities   $ 45,565,059     $ 11,058,710     $ 5,694,748    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 87,508,806     $ 33,759,152     $ 22,510,633    
Net assets applicable to common shares   $ 159,414,046     $ 59,771,043     $ 39,480,926    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 99,270     $ 38,619     $ 25,755    
Additional paid-in capital     140,776,589       54,744,606       36,515,052    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     2,178,426       220,638       (404,359 )  
Accumulated undistributed net investment income     133,593       68,410       15,956    
Net unrealized appreciation (computed on the basis of identified cost)     16,226,168       4,698,770       3,328,522    
Net assets applicable to common shares   $ 159,414,046     $ 59,771,043     $ 39,480,926    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      3,500       1,350       900    
Common Shares Outstanding  
      9,926,977       3,861,925       2,575,502    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 16.06     $ 15.48     $ 15.33    

 

See notes to financial statements
33



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Assets and Liabilities

As of March 31, 2007

    Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
Assets  
Investments —  
Identified cost   $ 46,580,030     $ 39,911,650     $ 68,642,582    
Unrealized appreciation     2,748,481       2,280,714       3,800,664    
Investments, at value   $ 49,328,511     $ 42,192,364     $ 72,443,246    
Cash   $     $ 29,598     $ 113,869    
Interest receivable     602,187       586,183       810,378    
Receivable for daily variation margin on open financial futures contracts     8,750       3,125       13,750    
Total assets   $ 49,939,448     $ 42,811,270     $ 73,381,243    
Liabilities  
Payable for floating rate notes issued   $ 6,765,000     $ 5,780,000     $ 9,580,000    
Interest expense and fees payable     74,690       56,894       88,130    
Payable for open interest rate swap contracts     6,902       6,350       9,717    
Due to custodian     86,262                
Payable to affiliate for Trustees' fees                 11    
Payable to affiliate for investment advisory fees     14,713       12,610       22,469    
Accrued expenses     36,503       30,212       37,821    
Total liabilities   $ 6,984,070     $ 5,886,066     $ 9,738,148    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 15,502,549     $ 13,504,659     $ 22,509,552    
Net assets applicable to common shares   $ 27,452,829     $ 23,420,545     $ 41,133,543    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 17,537     $ 15,118     $ 25,644    
Additional paid-in capital     24,849,722       21,413,714       36,351,305    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     (241,613 )     (358,254 )     842,752    
Accumulated undistributed net investment income     39,764       59,935       50,862    
Net unrealized appreciation (computed on the basis of identified cost)     2,787,419       2,290,032       3,862,980    
Net assets applicable to common shares   $ 27,452,829     $ 23,420,545     $ 41,133,543    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      620       540       900    
Common Shares Outstanding  
      1,753,691       1,511,845       2,564,435    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 15.65     $ 15.49     $ 16.04    

 

See notes to financial statements
34



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Assets and Liabilities

As of March 31, 2007

    Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
Assets  
Investments —  
Identified cost   $ 64,088,447     $ 61,554,259     $ 78,901,016    
Unrealized appreciation     2,778,867       3,766,396       3,592,555    
Investments, at value   $ 66,867,314     $ 65,320,655     $ 82,493,571    
Cash   $     $     $ 215,842    
Interest receivable     857,137       849,922       994,334    
Receivable for daily variation margin on open financial futures contracts     11,875       25,937          
Receivable for open interest rate swap contracts                 58,357    
Total assets   $ 67,736,326     $ 66,196,514     $ 83,762,104    
Liabilities  
Payable for floating rate notes issued   $ 4,665,000     $ 4,770,000     $ 10,395,000    
Interest expense and fees payable     56,289       53,663       106,418    
Payable for investments purchased                    
Payable for open interest rate swap contracts     9,717       9,611          
Payable for when-issued securities                 1,114,669    
Due to custodian     432,576       562,950          
Payable to affiliate for Trustees' fees     133       3       131    
Payable to affiliate for investment advisory fees     21,372       20,738       25,418    
Accrued expenses     42,160       41,517       34,483    
Total liabilities   $ 5,227,247     $ 5,458,482     $ 11,676,119    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 22,505,161     $ 21,873,082     $ 26,004,413    
Net assets applicable to common shares   $ 40,003,918     $ 38,864,950     $ 46,081,572    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 25,551     $ 25,127     $ 29,432    
Additional paid-in capital     36,207,139       35,610,746       41,716,097    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     611,764       (696,044 )     637,175    
Accumulated undistributed net investment income     330,767       38,291       47,956    
Net unrealized appreciation (computed on the basis of identified cost)     2,828,697       3,886,830       3,650,912    
Net assets applicable to common shares   $ 40,003,918     $ 38,864,950     $ 46,081,572    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      900       875       1,040    
Common Shares Outstanding  
      2,555,103       2,512,727       2,943,172    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 15.66     $ 15.47     $ 15.66    

 

See notes to financial statements
35



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Operations

For the Six Months Ended March 31, 2007

    Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
Investment Income  
Interest   $ 6,734,410     $ 2,367,730     $ 1,575,447    
Total investment income   $ 6,734,410     $ 2,367,730     $ 1,575,447    
Expenses  
Investment adviser fee   $ 677,865     $ 256,784     $ 169,968    
Trustees' fees and expenses     5,727       3,366       845    
Legal and accounting services     21,060       18,209       17,611    
Printing and postage     19,690       5,851       4,019    
Custodian fee     54,997       23,227       20,508    
Interest expense and fees     767,343       146,019       98,162    
Transfer and dividend disbursing agent fees     63,723       25,635       17,841    
Preferred shares remarketing agent fee     109,076       42,071       28,048    
Miscellaneous     17,511       21,295       15,713    
Total expenses   $ 1,736,992     $ 542,457     $ 372,715    
Deduct —  
Reduction of custodian fee   $ 8,677     $ 6,432     $ 1,467    
Reduction of investment adviser fee     184,872       70,032       46,355    
Total expense reductions   $ 193,549     $ 76,464     $ 47,822    
Net expenses   $ 1,543,443     $ 465,993     $ 324,893    
Net investment income   $ 5,190,967     $ 1,901,737     $ 1,250,554    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 2,922,104     $ 1,287,443     $ 294,625    
Financial futures contracts     (1,196,941 )     (234,115 )     (197,515 )  
Net realized gain   $ 1,725,163     $ 1,053,328     $ 97,110    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (1,399,244 )   $ (812,942 )   $ (2,193 )  
Financial futures contracts     1,687,905       372,396       280,465    
Interest rate swap contracts     (37,324 )     (14,641 )     (9,782 )  
Net change in unrealized appreciation (depreciation)   $ 251,337     $ (455,187 )   $ 268,490    
Net realized and unrealized gain   $ 1,976,500     $ 598,141     $ 365,600    
Distributions to preferred shareholders  
From net investment income   $ (1,451,318 )   $ (526,424 )   $ (387,303 )  
Net increase in net assets from operations   $ 5,716,149     $ 1,973,454     $ 1,228,851    

 

See notes to financial statements
36



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Operations

For the Six Months Ended March 31, 2007

    Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
Investment Income  
Interest   $ 1,222,137     $ 1,003,273     $ 1,679,239    
Total investment income   $ 1,222,137     $ 1,003,273     $ 1,679,239    
Expenses  
Investment adviser fee   $ 118,231     $ 101,362     $ 174,556    
Affiliated interest expense     38,877                
Trustees' fees and expenses     845       85       857    
Legal and accounting services     17,066       15,925       17,347    
Printing and postage     2,460       3,820       6,002    
Custodian fee     21,086       13,552       22,718    
Interest expense and fees     164,447       112,696       185,968    
Transfer and dividend disbursing agent fees     13,440       11,113       18,441    
Preferred shares remarketing agent fee     19,321       16,830       28,048    
Miscellaneous     15,482       15,477       15,888    
Total expenses   $ 411,255     $ 290,860     $ 469,825    
Deduct —  
Reduction of custodian fee   $ 2,160     $ 1,739     $ 5,531    
Reduction of investment adviser fee     32,245       27,644       46,915    
Total expense reductions   $ 34,405     $ 29,383     $ 52,446    
Net expenses   $ 376,850     $ 261,477     $ 417,379    
Net investment income   $ 845,287     $ 741,796     $ 1,261,860    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 271,896     $ 270,390     $ 1,266,553    
Financial futures contracts     (134,973 )     (63,922 )     (209,460 )  
Net realized gain   $ 136,923     $ 206,468     $ 1,057,093    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (294,279 )   $ (241,463 )   $ (834,304 )  
Financial futures contracts     194,398       101,021       300,583    
Interest rate swap contracts     (6,902 )     (6,350 )     (9,717 )  
Net change in unrealized appreciation (depreciation)   $ (106,783 )   $ (146,792 )   $ (543,438 )  
Net realized and unrealized gain   $ 30,140     $ 59,676     $ 513,655    
Distributions to preferred shareholders  
From net investment income   $ (241,092 )   $ (210,611 )   $ (354,514 )  
Net increase in net assets from operations   $ 634,335     $ 590,861     $ 1,421,001    

 

See notes to financial statements
37



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Operations

For the Six Months Ended March 31, 2007

    Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
Investment Income  
Interest   $ 1,559,159     $ 1,529,325     $ 1,911,223    
Total investment income   $ 1,559,159     $ 1,529,325     $ 1,911,223    
Expenses  
Investment adviser fee   $ 172,596     $ 166,756     $ 197,429    
Trustees' fees and expenses     910       848       910    
Legal and accounting services     18,746       16,289       17,969    
Printing and postage     3,620       4,550       6,180    
Custodian fee     20,890       20,813       21,632    
Interest expense and fees     90,609       92,580       201,614    
Transfer and dividend disbursing agent fees     19,646       17,471       19,785    
Preferred shares remarketing agent fee     28,048       27,269       32,411    
Miscellaneous     20,058       19,168       17,000    
Total expenses   $ 375,123     $ 365,744     $ 514,930    
Deduct —  
Reduction of custodian fee   $ 2,707     $ 4,137     $ 4,298    
Reduction of investment adviser fee     47,072       45,479       53,061    
Total expense reductions   $ 49,779     $ 49,616     $ 57,359    
Net expenses   $ 325,344     $ 316,128     $ 457,571    
Net investment income   $ 1,233,815     $ 1,213,197     $ 1,453,652    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 609,849     $ 121,004     $ 778,281    
Financial futures contracts     (202,720 )     (313,305 )     198,122    
Interest rate swap contracts                 (401,154 )  
Net realized gain (loss)   $ 407,129     $ (192,301 )   $ 575,249    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (280,672 )   $ 84,762     $ (539,635 )  
Financial futures contracts     286,868       445,123       (32,600 )  
Interest rate swap contracts     (9,717 )     (9,611 )     557,015    
Net change in unrealized appreciation (depreciation)   $ (3,521 )   $ 520,274     $ (15,220 )  
Net realized and unrealized gain   $ 403,608     $ 327,973     $ 560,029    
Distributions to preferred shareholders  
From net investment income   $ (173,867 )   $ (363,514 )   $ (418,378 )  
From net realized gain     (200,979 )              
Net increase in net assets from operations   $ 1,262,577     $ 1,177,656     $ 1,595,303    

 

See notes to financial statements
38



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2007

Increase (Decrease) in Net Assets   Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
From operations —  
Net investment income   $ 5,190,967     $ 1,901,737     $ 1,250,554    
Net realized gain from investment transactions and financial futures contracts     1,725,163       1,053,328       97,110    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    251,337       (455,187 )     268,490    
Distributions to preferred shareholders —  
From net investment income     (1,451,318 )     (526,424 )     (387,303 )  
Net increase in net assets from operations   $ 5,716,149     $ 1,973,454     $ 1,228,851    
Distributions to common shareholders —  
From net investment income   $ (3,790,671 )   $ (1,401,879 )   $ (876,745 )  
Total distributions to common shareholders   $ (3,790,671 )   $ (1,401,879 )   $ (876,745 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 25,683     $     $    
Net increase in net assets from capital share transactions   $ 25,683     $     $    
Net increase in net assets   $ 1,951,161     $ 571,575     $ 352,106    
Net Assets Applicable to Common Shares  
At beginning of year   $ 157,462,885     $ 59,199,468     $ 39,128,820    
At end of year   $ 159,414,046     $ 59,771,043     $ 39,480,926    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 134,310     $ 68,410     $ 15,956    

 

See notes to financial statements
39



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2007

Increase (Decrease) in Net Assets   Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
From operations —  
Net investment income   $ 845,287     $ 741,796     $ 1,261,860    
Net realized gain from investment transactions and financial futures contracts     136,923       206,468       1,057,093    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (106,783 )     (146,792 )     (543,438 )  
Distributions to preferred shareholders —  
From net investment income     (241,092 )     (210,611 )     (354,514 )  
Net increase in net assets from operations   $ 634,335     $ 590,861     $ 1,421,001    
Distributions to common shareholders —  
From net investment income   $ (609,041 )   $ (504,950 )   $ (916,719 )  
Total distributions to common shareholders   $ (609,041 )   $ (504,950 )   $ (916,719 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 8,287     $     $ 9,606    
Net increase in net assets from capital share transactions   $ 8,287     $     $ 9,606    
Net increase (decrease) in net assets   $ 33,581     $ 85,911     $ 513,888    
Net Assets Applicable to Common Shares  
At beginning of year   $ 27,419,248     $ 23,334,634     $ 40,619,655    
At end of year   $ 27,452,829     $ 23,420,545     $ 41,133,543    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 39,764     $ 59,935     $ 104,293    

 

See notes to financial statements
40



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2007

Increase (Decrease) in Net Assets   Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
From operations —  
Net investment income   $ 1,233,815     $ 1,213,197     $ 1,453,652    
Net realized gain (loss) from investment transactions, financial futures contracts and interest rate swap contracts     407,129       (192,301 )     575,249    
Net change in unrealized appreciation (depreciation) from investments, financial futures
contracts and interest rate swap contracts
    (3,521 )     520,274       (15,220 )  
Distributions to preferred shareholders —  
From net investment income     (173,867 )     (363,514 )     (418,378 )  
From net realized gain     (200,979 )              
Net increase in net assets from operations   $ 1,262,577     $ 1,177,656     $ 1,595,303    
Distributions to common shareholders —  
From net investment income   $ (890,387 )   $ (844,276 )   $ (1,030,104 )  
From net realized gain     (634,133 )              
Total distributions to common shareholders   $ (1,524,520 )   $ (844,276 )   $ (1,030,104 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 2,727     $     $    
Net increase in net assets from capital share transactions   $ 2,727     $     $    
Net increase (decrease) in net assets   $ (259,216 )   $ 333,380     $ 565,199    
Net Assets Applicable to Common Shares  
At beginning of year   $ 40,263,134     $ 38,531,570     $ 45,516,373    
At end of year   $ 40,003,918     $ 38,864,950     $ 46,081,572    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 330,767     $ 38,291     $ 47,956    

 

See notes to financial statements
41



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2006

Increase (Decrease) in Net Assets   Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
From operations —  
Net investment income   $ 10,500,454     $ 3,818,662     $ 2,527,070    
Net realized gain from investment transactions and financial futures contracts     4,356,455       1,273,316       1,052,884    
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    1,649,905       834,431       (147,834 )  
Distributions to preferred shareholders —
From net investment income
    (2,631,920 )     (937,884 )     (684,139 )  
Net increase in net assets from operations   $ 13,874,894     $ 4,988,525     $ 2,747,981    
Distributions to common shareholders —  
From net investment income   $ (8,416,039 )   $ (2,983,698 )   $ (1,912,090 )  
Total distributions to common shareholders   $ (8,416,039 )   $ (2,983,698 )   $ (1,912,090 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 67,445     $ 7,738     $ 24,117    
Net increase in net assets from capital share transactions   $ 67,445     $ 7,738     $ 24,117    
Net increase in net assets   $ 5,526,300     $ 2,012,565     $ 860,008    
Net Assets Applicable to Common Shares  
At beginning of year   $ 151,936,585     $ 57,186,903     $ 38,268,812    
At end of year   $ 157,462,885     $ 59,199,468     $ 39,128,820    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 184,615     $ 94,976     $ 29,450    

 

See notes to financial statements
42



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2006

Increase (Decrease) in Net Assets   Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
From operations —  
Net investment income   $ 1,722,682     $ 1,498,369     $ 2,567,366    
Net realized gain from investment transactions and financial futures contracts     888,468       630,423       1,305,317    
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    178,464       73,846       418,939    
Distributions to preferred shareholders —  
From net investment income     (447,955 )     (381,488 )     (648,584 )  
Net increase in net assets from operations   $ 2,341,659     $ 1,821,150     $ 3,643,038    
Distributions to common shareholders —  
From net investment income   $ (1,400,956 )   $ (1,166,029 )   $ (2,101,233 )  
Total distributions to common shareholders   $ (1,400,956 )   $ (1,166,029 )   $ (2,101,233 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 37,096     $ 9,334     $ 45,513    
Net increase in net assets from capital share transactions   $ 37,096     $ 9,334     $ 45,513    
Net increase in net assets   $ 977,799     $ 664,455     $ 1,587,318    
Net Assets Applicable to Common Shares  
At beginning of year   $ 26,441,449     $ 22,670,179     $ 39,032,337    
At end of year   $ 27,419,248     $ 23,334,634     $ 40,619,655    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 44,610     $ 33,700     $ 60,235    

 

See notes to financial statements
43



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2006

Increase (Decrease) in Net Assets   Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
From operations —  
Net investment income   $ 2,529,875     $ 2,456,473     $ 2,925,034    
Net realized gain from investment transactions, financial futures contracts and interest rate swap contracts     1,820,664       1,437,276       1,906,794    
Net change in unrealized appreciation (depreciation) from investments and financial
futures contracts
    (449,834 )     (166,968 )     (266,841 )  
Distributions to preferred shareholders —  
From net investment income     (612,672 )     (660,891 )     (783,269 )  
From net realized gain     (37,328 )              
Net increase in net assets from operations   $ 3,250,705     $ 3,065,890     $ 3,781,718    
Distributions to common shareholders —  
From net investment income   $ (1,870,200 )   $ (1,789,062 )   $ (2,199,819 )  
From net realized gain     (217,935 )              
Total distributions to common shareholders   $ (2,088,135 )   $ (1,789,062 )   $ (2,199,819 )  
Capital share transactions  
Reinvestment of distributions to common shareholders $         $     $ 14,661    
Net increase in net assets from capital share transactions   $     $     $ 14,661    
Net increase in net assets   $ 1,162,570     $ 1,276,828     $ 1,596,560    
Net Assets Applicable to Common Shares  
At beginning of year   $ 39,100,564     $ 37,254,742     $ 43,919,813    
At end of year   $ 40,263,134     $ 38,531,570     $ 45,516,373    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 161,206     $ 32,884     $ 42,786    

 

See notes to financial statements
44



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Cash Flows

For the Six Months Ended March 31, 2007

Cash flows from operating activities   Insured
Municipal Fund II
  Insured
Massachusetts Fund
  Insured
Michigan Fund
 
Net increase in net assets from operations   $ 5,716,149     $ 634,335     $ 590,861    
Distributions to preferred shareholders     1,451,318       241,092       210,611    
Net increase in net assets from operations excluding distributions to
preferred shareholders from net investment income
    7,167,467       875,427       801,472    
Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided/(used) in operating activities:
 
Investments purchased     (33,518,047 )     (4,001,487 )     (1,155,382 )  
Investments sold     32,240,958       7,532,796       1,426,961    
Net amortization of premium/(discount)     (897,700 )     (54,814 )     (118,057 )  
Interest receivable     (104,859 )     (2,043 )     (20,521 )  
Receivable for daily variation margin on open financial futures contracts     (94,063 )     (8,750 )     (3,125 )  
Receivable from the transfer agent     (25,683 )     2,971          
Payable for when-issued securities     1,361,593                
Payable to affiliate for investment advisory fees     4,109       653       535    
Payable for open interest rate swap contracts     37,324       6,902       6,350    
Interest expense and fees payable     8,570       (8,884 )     1,630    
Accrued expenses     (34,286 )     (11,954 )     (12,463 )  
Net change in realized and unrealized (gain)/loss on investments     (1,522,860 )     22,383       (28,927 )  
Net cash provided by operating activities     4,622,523       4,353,200       898,473    
Cash flows from financing activities  
Due to custodian     345,944       75,269       (152,944 )  
Cash distributions paid for common shares net of reinvestments     (3,764,988 )     (600,754 )     (504,950 )  
Payable to affiliate for inverse floaters           (1,586,200 )        
Repayment of secured borrowings           (2,000,000 )        
Distributions to preferred shareholders from net investment income     (1,451,081 )     (241,515 )     (210,981 )  
Net cash used in financing activities     (4,870,125 )     (4,353,200 )     (868,875 )  
Net increase (decrease) in cash     (247,602 )           29,598    
Cash at beginning of period     247,602                
Cash at end of period   $     $     $ 29,598    
Supplemental disclosure of cash flow information:  
Noncash financing activities not included herein consists of reinvestment of dividends and distributions of :   $ 25,683     $ 8,287     $    

 

See notes to financial statements
45



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statement of Cash Flows

For the Six Months Ended March 31, 2007

Cash flows from operating activities   Insured
New Jersey Fund
  Insured
Pennsylvania Fund
 
Net increase in net assets from operations   $ 1,421,001     $ 1,595,303    
Distributions to preferred shareholders     354,514       418,378    
Net increase in net assets from operations excluding distributions to
preferred shareholders from net investment income
    1,775,515       2,013,681    
Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided/(used) in operating activities:
 
Investments purchased     (9,902,490 )     (8,696,295 )  
Investments sold     10,144,777       9,012,897    
Net amortization of premium/(discount)     (232,221 )     (145,144 )  
Interest receivable     (98,493 )     (64,956 )  
Receivable for daily variation margin on open financial futures contracts     (13,750 )        
Receivable from transfer agent     5,140          
Receivable for open swap contracts           (58,357 )  
Payable for open swap contracts     9,717       (498,658 )  
Payable for closed swap contracts           (107,000 )  
Payable to affiliate for investment advisory fees     1,835       1,995    
Payable to affiliate for trustees' fees     11       64    
Interest expense and fees payable     2,526       1,855    
Accrued expenses     (8,132 )     (9,766 )  
Net change in realized and unrealized (gain)/loss on investments     (378,818 )     (238,646 )  
Net cash provided by operating activities     1,305,617       1,211,670    
Cash flows from financing activities  
Cash distributions paid for common shares net of reinvestments     (907,113 )     (1,030,104 )  
Distributions to preferred shareholders from net investment income     (354,591 )     (418,538 )  
Net cash used in financing activities     (1,261,704 )     (1,448,642 )  
Net increase (decrease) in cash     43,913       (236,972 )  
Cash at beginning of period     69,956       452,814    
Cash at end of period   $ 113,869     $ 215,842    
Supplemental disclosure of cash flow information:  
Noncash financing activities not included herein consists of reinvestment of dividends and distributions of :   $ 9,606     $    

 

See notes to financial statements
46




Eaton Vance Insured Municipal Bond Funds as of March 30, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund II  
    Six Months Ended
March 30, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.860     $ 15.310     $ 15.030     $ 14.790     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.523     $ 1.058     $ 1.094     $ 1.162     $ 0.879    
Net realized and unrealized gain     0.205       0.605       0.359       0.334       0.508    
Distributions to preferred shareholders  
From net investment income     (0.146 )     (0.265 )     (0.169 )     (0.080 )     (0.071 )  
From net realized gain                 0.000 (4)      (0.017 )        
Total income from operations   $ 0.582     $ 1.398     $ 1.284     $ 1.399     $ 1.316    
Less distributions to common shareholders  
From net investment income   $ (0.382 )   $ (0.848 )   $ (1.001 )   $ (1.001 )   $ (0.714 )  
From net realized gain                 (0.003 )     (0.158 )        
Total distributions to common shareholders   $ (0.382 )   $ (0.848 )   $ (1.004 )   $ (1.159 )   $ (0.714 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.048 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.089 )  
Net asset value — End of period (Common shares)   $ 16.060     $ 15.860     $ 15.310     $ 15.030     $ 14.790    
Market value — End of period (Common shares)   $ 16.100     $ 15.310     $ 16.170     $ 14.820     $ 14.000    
Total Investment Return on Net Asset Value(5)      3.76 %     9.56 %     8.77 %     10.00 %     8.46 %(6)   
Total Investment Return on Market Value(5)      7.76 %     0.13 %     16.51 %     14.59 %     2.67 %(6)   

 

See notes to financial statements
47



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund II  
    Six Months Ended
March 30, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 159,414     $ 157,463     $ 151,937     $ 149,057     $ 146,574    
Ratios (As a percentage of average net assets applicable to common shares):                                          
Expenses excluding interest and fees(7)     0.99 %(9)     1.02 %     1.03 %     1.00 %     0.86 %(9)  
Interest and fee expense(7)(8)     0.96 %(9)     0.91 %     0.62 %     0.36 %     0.26 %(9)  
Total expenses(7)     1.95 %(9)     1.93 %     1.65 %     1.36 %     1.12 %(9)  
Expenses after custodian fee reduction excluding interest and fees(7)     0.97 %(9)     1.01 %     1.02 %     1.00 %     0.84 %(9)  
Net investment income(7)     6.52 %(9)     6.87 %     7.11 %     7.92 %     7.14 %(9)  
Portfolio Turnover     11 %     26 %     10 %     28 %     32 %  

 

  The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(7)     0.64 %(9)     0.65 %     0.65 %     0.63 %     0.57 %(9)  
Interest and fee expense(7)(8)     0.62 %(9)     0.58 %     0.40 %     0.23 %     0.17 %(9)  
Total expenses(7)     1.26 %(9)     1.23 %     1.05 %     0.86 %     0.74 %(9)  
Expenses after custodian fee reduction excluding interest and fees(7)     0.63 %(9)     0.64 %     0.65 %     0.62 %     0.56 %(9)  
Net investment income(7)     4.21 %(9)     4.37 %     4.52 %     4.94 %     4.72 %(9)  
Senior Securities:                                          
Total preferred shares outstanding     3,500       3,500       3,500       3,500       3,500    
Asset coverage per preferred share(10)   $ 70,549     $ 69,992     $ 68,411     $ 67,599     $ 66,893    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Equal to less than $0.001 per share.

(5)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(6)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(7)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(8)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(9)  Annualized.

(10)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(11)  Plus accumulated and unpaid dividends.

See notes to financial statements
48



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund II  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.330     $ 14.810     $ 14.510     $ 14.560     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.492     $ 0.989     $ 1.008     $ 1.060     $ 0.822    
Net realized and unrealized gain (loss)     0.157       0.547       0.360       (0.022 )     0.281    
Distributions to preferred shareholders  
From net investment income     (0.136 )     (0.243 )     (0.145 )     (0.076 )     (0.050 )  
From net realized gain                       (0.004 )        
Total income from operations   $ 0.513     $ 1.293     $ 1.223     $ 0.958     $ 1.053    
Less distributions to common shareholders  
From net investment income   $ (0.363 )   $ (0.773 )   $ (0.923 )   $ (0.948 )   $ (0.675 )  
From net realized gain                       (0.060 )        
Total distributions to common shareholders   $ (0.363 )   $ (0.773 )   $ (0.923 )   $ (1.008 )   $ (0.675 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.054 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.089 )  
Net asset value — End of period (Common shares)   $ 15.480     $ 15.330     $ 14.810     $ 14.510     $ 14.560    
Market value — End of period (Common shares)   $ 15.200     $ 14.635     $ 14.770     $ 14.580     $ 13.800    
Total Investment Return on Net Asset Value(4)      3.43 %     9.15 %     8.65 %     6.84 %     6.62 %(5)   
Total Investment Return on Market Value(4)      6.38 %     4.49 %     7.84 %     13.27 %     1.06 %(5)   

 

See notes to financial statements
49



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund II  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 59,771     $ 59,199     $ 57,187     $ 55,955     $ 56,083    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses excluding interest and fees(6)     1.09 %(8)     1.13 %     1.10 %     1.09 %     0.98 %(8)  
Interest and fee expense(6)(7)     0.49 %(8)     0.48 %     0.31 %     0.15 %     0.15 %(8)  
Total expenses(6)     1.58 %(8)     1.61 %     1.41 %     1.24 %     1.13 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     1.07 %(8)     1.11 %     1.06 %     1.08 %     0.96 %(8)  
Net investment income(6)     6.37 %(8)     6.66 %     6.81 %     7.27 %     6.75 %(8)  
Portfolio Turnover     18 %     13 %     13 %     11 %     22 %  

 

  The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(6)     0.70 %(8)     0.71 %     0.69 %     0.68 %     0.64 %(8)  
Interest and fee expense(6)(7)     0.31 %(8)     0.30 %     0.20 %     0.09 %     0.10 %(8)  
Total expenses(6)     1.01 %(8)     1.01 %     0.89 %     0.77 %     0.74 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     0.69 %(8)     0.70 %     0.67 %     0.67 %     0.63 %(8)  
Net investment income(6)     4.07 %(8)     4.19 %     4.28 %     4.54 %     4.46 %(8)  
Senior Securities:                                
Total preferred shares outstanding     1,350       1,350       1,350       1,350       1,350    
Asset coverage per preferred share(9)   $ 69,282     $ 68,858     $ 67,364     $ 66,455     $ 66,545    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see note 1B).

(8)  Annualized.

(9)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements
50



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Florida Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.190     $ 14.870     $ 14.520     $ 14.550     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.486     $ 0.981     $ 1.018     $ 1.062     $ 0.788    
Net realized and unrealized gain     0.144       0.348       0.399       0.002 (4)      0.319    
Distributions to preferred shareholders  
From net investment income     (0.150 )     (0.266 )     (0.159 )     (0.077 )     (0.060 )  
From net realized gain                       (0.007 )        
Total income from operations   $ 0.480     $ 1.063     $ 1.258     $ 0.980     $ 1.047    
Less distributions to common shareholders  
From net investment income   $ (0.340 )   $ (0.743 )   $ (0.908 )   $ (0.930 )   $ (0.675 )  
From net realized gain                       (0.080 )        
Total distributions to common shareholders   $ (0.340 )   $ (0.743 )   $ (0.908 )   $ (1.010 )   $ (0.675 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.058 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.089 )  
Net asset value — End of period (Common shares)   $ 15.330     $ 15.190     $ 14.870     $ 14.520     $ 14.550    
Market value — End of period (Common shares)   $ 14.290     $ 14.410     $ 14.980     $ 14.750     $ 14.100    
Total Investment Return on Net Asset Value(5)      3.36 %     7.64 %     8.85 %     7.12 %     6.37 %(6)   
Total Investment Return on Market Value(5)      1.56 %     1.37 %     7.94 %     12.29 %     3.08 %(6)   

 

See notes to financial statements
51



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Florida Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 39,481     $ 39,129     $ 38,269     $ 37,211     $ 37,186    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses excluding interest and fees(7)     1.16 %(9)     1.20 %     1.17 %     1.14 %     1.04 %(9)  
Interest and fee expense(7)(8)     0.50 %(9)     0.47 %     0.29 %     0.18 %     0.09 %(9)  
Total expenses(7)     1.66 %(9)     1.67 %     1.46 %     1.32 %     1.13 %(9)  
Expenses after custodian fee reduction excluding interest and fees(7)     1.15 %(9)     1.19 %     1.16 %     1.14 %     0.98 %(9)  
Net investment income(7)     6.35 %(9)     6.63 %     6.84 %     7.30 %     6.45 %(9)  
Portfolio Turnover     10 %     16 %     13 %     17 %     10 %  

 

  The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(7)     0.74 %(9)     0.76 %     0.74 %     0.71 %     0.69 %(9)  
Interest and fee expense(7)(8)     0.32 %(9)     0.29 %     0.18 %     0.11 %     0.06 %(9)  
Total expenses(7)     1.06 %(9)     1.05 %     0.92 %     0.82 %     0.75 %(9)  
Expenses after custodian fee reduction excluding interest and fees(7)     0.73 %(9)     0.75 %     0.73 %     0.71 %     0.65 %(9)  
Net investment income(7)     4.05 %(9)     4.17 %     4.30 %     4.55 %     4.25 %(9)  
Senior Securities:                                          
Total preferred shares outstanding     900       900       900       900       900    
Asset coverage per preferred share(10)   $ 68,880     $ 68,489     $ 67,528     $ 66,348     $ 66,319    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  The per share amount does not reflect the actual net realized and unrealized gain/loss for the period because of the timing of reinvested shares of the Fund and the amount of per share realized gains and losses at such time.

(5)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(6)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(7)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(8)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(9)  Annualized.

(10)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this number by the number of preferred shares outstanding.

(11)  Plus accumulated and unpaid dividends.

See notes to financial statements
52



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Massachusetts Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.640     $ 15.100     $ 14.870     $ 14.670     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.482     $ 0.983     $ 1.031     $ 1.109     $ 0.823    
Net realized and unrealized gain     0.012       0.613       0.290       0.350       0.411    
Distributions to preferred shareholders  
From net investment income     (0.137 )     (0.256 )     (0.143 )     (0.069 )     (0.058 )  
From net realized gain                       (0.017 )        
Total income from operations   $ 0.357     $ 1.340     $ 1.178     $ 1.373     $ 1.176    
Less distributions to common shareholders  
From net investment income   $ (0.347 )   $ (0.800 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
From net realized gain                       (0.225 )        
Total distributions to common shareholders   $ (0.347 )   $ (0.800 )   $ (0.948 )   $ (1.173 )   $ (0.675 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.066 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.090 )  
Net asset value — End of period (Common shares)   $ 15.650     $ 15.640     $ 15.100     $ 14.870     $ 14.670    
Market value — End of period (Common shares)   $ 15.590     $ 16.090     $ 17.350     $ 15.570     $ 14.450    
Total Investment Return on Net Asset Value(4)      2.29 %     9.14 %     7.74 %     9.74 %     7.22 %(5)   
Total Investment Return on Market Value(4)      (0.95 )%     (2.28 )%     18.23 %     16.66 %     5.61 %(5)   

 

See notes to financial statements
53



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Massachusetts Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 27,453     $ 27,419     $ 26,441     $ 25,982     $ 25,586    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses excluding interest and fees(6)     1.28 %(8)     1.29 %     1.25 %     1.24 %     1.10 %(8)  
Interest and fee expense(6)(7)     1.48 %(8)     1.54 %     1.26 %     0.79 %     0.26 %(8)  
Total expenses(6)     2.76 %(8)     2.83 %     2.51 %     2.03 %     1.36 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     1.26 %(8)     1.26 %     1.24 %     1.24 %     1.06 %(8)  
Net investment income(6)     6.14 %(8)     6.50 %     6.79 %     7.58 %     6.73 %(8)  
Portfolio Turnover     8 %     15 %     11 %     33 %     35 %  

 

  The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(6)     0.82 %(8)     0.81 %     0.79 %     0.77 %     0.73 %(8)  
Interest and fee expense(6)(7)     0.95 %(8)     0.97 %     0.80 %     0.49 %     0.17 %(8)  
Total expenses(6)     1.77 %(8)     1.78 %     1.59 %     1.26 %     0.90 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     0.81 %(8)     0.80 %     0.78 %     0.77 %     0.70 %(8)  
Net investment income(6)     3.93 %(8)     4.10 %     4.29 %     4.72 %     4.42 %(8)  
Senior Securities:                                          
Total preferred shares outstanding     620       620       620       620       620    
Asset coverage per preferred share(9)   $ 69,283     $ 69,229     $ 67,649     $ 66,907     $ 66,270    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002 to September 30, 2003.

(3)  Net asset value at the beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)    Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)    Interest and fee expense related to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(8)  Annualized.

(9)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements
54



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Michigan Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.430     $ 15.000     $ 14.840     $ 14.520     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.491     $ 0.991     $ 1.039     $ 1.105     $ 0.824    
Net realized and unrealized gain     0.042       0.462       0.233       0.252       0.262    
Distributions to preferred shareholders  
From net investment income     (0.139 )     (0.252 )     (0.164 )     (0.089 )     (0.058 )  
Total income from operations   $ 0.394     $ 1.201     $ 1.108     $ 1.268     $ 1.028    
Less distributions to common shareholders  
From net investment income   $ (0.334 )   $ (0.771 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
Total distributions to common shareholders   $ (0.334 )   $ (0.771 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.068 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.090 )  
Net asset value — End of period (Common shares)   $ 15.490     $ 15.430     $ 15.000     $ 14.840     $ 14.520    
Market value — End of period (Common shares)   $ 14.610     $ 14.190     $ 16.200     $ 15.490     $ 14.410    
Total Investment Return on Net Asset Value(4)      2.73 %     8.44 %     7.52 %     8.96 %     6.12 %(5)   
Total Investment Return on Market Value(4)      5.36 %     (7.67 )%     11.26 %     14.60 %     5.31 %(5)   

 

See notes to financial statements
55



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Michigan Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 23,421     $ 23,335     $ 22,670     $ 22,396     $ 21,893    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses excluding interest and fees(6)     1.28 %(8)     1.32 %     1.28 %     1.28 %     1.14 %(8)  
Interest and fee expense(6)(7)     0.96 %(8)     0.90 %     0.60 %     0.33 %     1.27 %(8)  
Total expenses(6)     2.24 %(8)     2.22 %     1.88 %     1.61 %     2.41 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     1.27 %(8)     1.30 %     1.27 %     1.27 %     1.09 %(8)  
Net investment income(6)     6.34 %(8)     6.62 %     6.88 %     7.56 %     6.75 %(8)  
Portfolio Turnover     3 %     6 %     5 %     7 %     45 %  

 

  The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(6)     0.82 %(8)     0.83 %     0.81 %     0.79 %     0.75 %(8)  
Interest and fee expense(6)(7)     0.61 %(8)     0.56 %     0.38 %     0.21 %     0.83 %(8)  
Total expenses(6)     1.43 %(8)     1.39 %     1.19 %     1.00 %     1.58 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     0.81 %(8)     0.82 %     0.80 %     0.78 %     0.71 %(8)  
Net investment income(6)     4.02 %(8)     4.15 %     4.32 %     4.69 %     4.42 %(8)  
Senior Securities:                                          
Total preferred shares outstanding     540       540       540       540       540    
Asset coverage per preferred share(9)   $ 68,380     $ 68,222     $ 66,986     $ 66,475     $ 65,543    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Interest and fee expense related to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(8)  Annualized.

(9)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements
56



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New Jersey Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.840     $ 15.240     $ 14.990     $ 14.760     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.492     $ 1.002     $ 1.039     $ 1.117     $ 0.826    
Net realized and unrealized gain     0.204       0.671       0.330       0.361       0.489    
Distributions to preferred shareholders  
From net investment income     (0.138 )     (0.253 )     (0.159 )     (0.067 )     (0.058 )  
From net realized gain                       (0.015 )        
Total income from operations   $ 0.558     $ 1.420     $ 1.210     $ 1.396     $ 1.257    
Less distributions to common shareholders  
From net investment income   $ (0.358 )   $ (0.820 )   $ (0.960 )   $ (0.960 )   $ (0.675 )  
From net realized gain                       (0.206 )        
Total distributions to common shareholders   $ (0.358 )   $ (0.820 )   $ (0.960 )   $ (1.166 )   $ (0.675 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.058 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.089 )  
Net asset value — End of period (Common shares)   $ 16.040     $ 15.840     $ 15.240     $ 14.990     $ 14.760    
Market value — End of period (Common shares)   $ 15.830     $ 16.400     $ 16.240     $ 15.490     $ 14.520    
Total Investment Return on Net Asset Value(4)      3.54 %     9.65 %     8.18 %     9.83 %     7.89 %(5)   
Total Investment Return on Market Value(4)      (1.30 )%     6.53 %     11.56 %     15.37 %     6.14 %(5)   

 

See notes to financial statements
57



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New Jersey Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 41,134     $ 40,620     $ 39,032     $ 38,326     $ 37,687    
Ratios (As a percentage of average net assets applicable to common shares):                                          
Expenses excluding interest and fees(6)     1.15 %(8)     1.19 %     1.15 %     1.13 %     1.03 %(8)  
Interest and fee expense(6)(7)     0.91 %(8)     0.86 %     0.59 %     0.31 %     0.27 %(8)  
Total expenses(6)     2.06 %(8)     2.05 %     1.74 %     1.44 %     1.30 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     1.13 %(8)     1.16 %     1.14 %     1.13 %     0.99 %(8)  
Net investment income(6)     6.41 %(8)     6.59 %     6.78 %     7.54 %     6.69 %(8)  
Portfolio Turnover     14 %     22 %     15 %     19 %     34 %  

 

  The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(6)     0.75 %(8)     0.75 %     0.73 %     0.71 %     0.69 %(8)  
Interest and fee expense(6)(7)     0.59 %(8)     0.55 %     0.38 %     0.20 %     0.18 %(8)  
Total expenses(6)     1.34 %(8)     1.30 %     1.11 %     0.91 %     0.87 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     0.73 %(8)     0.73 %     0.72 %     0.71 %     0.66 %(8)  
Net investment income(6)     4.14 %(8)     4.18 %     4.31 %     4.73 %     4.43 %(8)  
Senior Securities:                                          
Total preferred shares outstanding     900       900       900       900       900    
Asset coverage per preferred share(9)   $ 70,715     $ 70,144     $ 68,375     $ 67,588     $ 66,875    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(8)  Annualized.

(9)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements
58



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund II  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.760     $ 15.300     $ 14.910     $ 14.870     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.483     $ 0.990     $ 1.008     $ 1.080     $ 0.818    
Net realized and unrealized gain     0.102       0.542       0.462       0.223       0.617    
Distributions to preferred shareholders  
From net investment income     (0.068 )     (0.240 )     (0.148 )     (0.063 )     (0.057 )  
From net realized gain     (0.079 )     (0.015 )           (0.016 )        
Total income from operations   $ 0.438     $ 1.277     $ 1.322     $ 1.224     $ 1.378    
Less distributions to common shareholders  
From net investment income   $ (0.290 )   $ (0.732 )   $ (0.932 )   $ (0.963 )   $ (0.686 )  
From net realized gain     (0.248 )     (0.085 )           (0.221 )        
Total distributions to common shareholders   $ (0.538 )   $ (0.817 )   $ (0.932 )   $ (1.184 )   $ (0.686 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.058 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.089 )  
Net asset value — End of period (Common shares)   $ 15.660     $ 15.760     $ 15.300     $ 14.910     $ 14.870    
Market value — End of period (Common shares)   $ 15.720     $ 14.420     $ 14.570     $ 14.460     $ 13.710    
Total Investment Return on Net Asset Value(4)      3.35 %     9.02 %     9.17 %     8.75 %(5)      8.87 %(6)   
Total Investment Return on Market Value(4)      13.38 %     4.75 %     7.19 %     14.39 %(5)      0.38 %(6)   

 

See notes to financial statements
59



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund II  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 40,004     $ 40,263     $ 39,101     $ 38,089     $ 37,984    
Ratios (As a percentage of average net assets applicable to common shares):                                          
Expense excluding interest and fees(7)     1.17 %(9)     1.14 %     1.21 %     1.14 %     1.03 %(9)  
Interest and fee expense(7)(8)     0.45 %(9)     0.42 %     0.28 %     0.16 %     0.14 %(9)  
Total expense(7)     1.62 %(9)     1.56 %     1.49 %     1.30 %     1.17 %(9)  
Expenses after custodian fee reduction excluding interest and fees(7)     1.16 %(9)     1.11 %     1.19 %     1.13 %     0.98 %(9)  
Net investment income(7)     6.12 %(9)     6.48 %     6.60 %     7.31 %     6.65 %(9)  
Portfolio Turnover     12 %     26 %     29 %     26 %     49 %  

 

  The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expense excluding interest and fees(7)     0.76 %(9)     0.72 %     0.77 %     0.71 %     0.68 %(9)  
Interest and fee expense(7)(8)     0.29 %(9)     0.27 %     0.18 %     0.10 %     0.09 %(9)  
Total expense(7)     1.05 %(9)     0.99 %     0.95 %     0.81 %     0.77 %(9)  
Expenses after custodian fee reduction excluding interest and fees(7)     0.75 %(9)     0.71 %     0.76 %     0.71 %     0.65 %(9)  
Net investment income(7)     3.93 %(9)     4.11 %     4.18 %     4.58 %     4.40 %(9)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900       900    
Asset coverage per preferred share(10)   $ 69,455     $ 69,746     $ 68,450     $ 67,323     $ 67,209    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  During the year ended September 30, 2004, the investment adviser reimbursed the Fund for a net loss realized on the disposal of an investment in violation of restrictions. The reimbursement was less than $0.01 per common share and had no effect on total investment return on net asset value and total investment return on market value for the year ended September 30, 2004.

(6)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(7)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure.

(8)  Interest and fee expense related to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(9)  Annualized.

(10)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(11)  Plus accumulated and unpaid dividends.

See notes to financial statements
60



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Ohio Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.330     $ 14.830     $ 14.640     $ 14.620     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.483     $ 0.978     $ 1.006     $ 1.054     $ 0.776    
Net realized and unrealized gain     0.138       0.497       0.219       0.018       0.402    
Distributions to preferred shareholders  
From net investment income     (0.145 )     (0.263 )     (0.173 )     (0.086 )     (0.060 )  
From net realized gain                       (0.003 )        
Total income from operations   $ 0.476     $ 1.212     $ 1.052     $ 0.983     $ 1.118    
Less distributions to common shareholders  
From net investment income   $ (0.336 )   $ (0.712 )   $ (0.862 )   $ (0.930 )   $ (0.675 )  
From net realized gain                       (0.033 )        
Total distributions to common shareholders   $ (0.336 )   $ (0.712 )   $ (0.862 )   $ (0.963 )   $ (0.675 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.060 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.088 )  
Net asset value — End of period (Common shares)   $ 15.470     $ 15.330     $ 14.830     $ 14.640     $ 14.620    
Market value — End of period (Common shares)   $ 15.200     $ 14.600     $ 14.510     $ 15.200     $ 14.430    
Total Investment Return on Net Asset Value(4)      3.21 %     8.58 %     7.29 %     6.94 %     6.85 %(5)   
Total Investment Return on Market Value(4)      6.48 %     5.69 %     1.11 %     12.49 %     5.46 %(5)   

 

See notes to financial statements
61



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Ohio Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 38,865     $ 38,532     $ 37,255     $ 36,746     $ 36,610    
Ratios (As a percentage of average net assets applicable to common shares):                                          
Expenses excluding interest and fees(6)     1.17 %(8)     1.19 %     1.18 %     1.17 %     1.05 %(8)  
Interest and fee expense(6)(7)     0.48 %(8)     0.41 %     0.25 %     0.13 %     0.09 %(8)  
Total expenses(6)     1.65 %(8)     1.60 %     1.43 %     1.30 %     1.14 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     1.15 %(8)     1.16 %     1.16 %     1.16 %     0.99 %(8)  
Net investment income(6)     6.25 %(8)     6.56 %     6.76 %     7.30 %     6.38 %(8)  
Portfolio Turnover     14 %     16 %     8 %     23 %     19 %  

 

†  The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses excluding interest and fees(6)     0.75 %(8)     0.75 %     0.74 %     0.73 %     0.69 %(8)  
Interest and fee expense(6)(7)     0.31 %(8)     0.26 %     0.16 %     0.08 %     0.07 %(8)  
Total expenses(6)     1.06 %(8)     1.01 %     0.90 %     0.81 %     0.76 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     0.74 %(8)     0.73 %     0.73 %     0.72 %     0.65 %(8)  
Net investment income(6)     4.00 %(8)     4.14 %     4.26 %     4.55 %     4.21 %(8)  
Senior Securities:  
Total preferred shares outstanding     875       875       875       875       875    
Asset coverage per preferred share(9)   $ 69,415     $ 69,036     $ 67,586     $ 66,999     $ 66,841    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(8)  Annualized.

(9)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements
62



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Pennsylvania Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.470     $ 14.930     $ 14.410     $ 14.580     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.494     $ 0.994     $ 1.019     $ 1.068     $ 0.811    
Net realized and unrealized gain (loss)     0.188       0.559       0.587       (0.066 )     0.331    
Distributions to preferred shareholders  
From net investment income     (0.142 )     (0.266 )     (0.173 )     (0.083 )     (0.060 )  
From net realized gain                       (0.011 )        
Total income from operations   $ 0.540     $ 1.287     $ 1.433     $ 0.908     $ 1.082    
Less distributions to common shareholders  
From net investment income   $ (0.350 )   $ (0.747 )   $ (0.913 )   $ (0.938 )   $ (0.681 )  
From net realized gain                       (0.140 )        
Total distributions to common shareholders   $ (0.350 )   $ (0.747 )   $ (0.913 )   $ (1.078 )   $ (0.681 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $ (0.056 )  
Preferred Shares underwriting discounts   $     $     $     $     $ (0.090 )  
Net asset value — End of period (Common shares)   $ 15.660     $ 15.470     $ 14.930     $ 14.410     $ 14.580    
Market value — End of period (Common shares)   $ 15.160     $ 15.020     $ 15.540     $ 14.980     $ 14.330    
Total Investment Return on Net Asset Value(4)      3.64 %     9.00 %     10.01 %     6.43 %     6.63 %(5)   
Total Investment Return on Market Value(4)      3.33 %     1.68 %     10.15 %     12.57 %     4.80 %(5)   

 

See notes to financial statements
63



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Pennsylvania Fund  
    Six Months Ended
March 31, 2007
  Year Ended September 30,  
    (Unaudited)(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data   
Net assets applicable to common shares, end of period (000's omitted)   $ 46,082     $ 45,516     $ 43,920     $ 42,352     $ 42,822    
Ratios (As a percentage of average net assets applicable to common shares):  
Expenses excluding interest and fees(6)     1.13 %(8)     1.18 %     1.16 %     1.12 %     1.03 %(8)  
Interest and fee expense(6)(7)     0.88 %(8)     0.78 %     0.41 %     0.25 %     0.14 %(8)  
Total expenses(6)     2.01 %(8)     1.96 %     1.57 %     1.37 %     1.17 %(8)  
Expenses after custodian fee reduction excluding interest and fees(6)     1.12 %(8)     1.15 %     1.15 %     1.11 %     0.97 %(8)  
Net investment income(6)     6.34 %(8)     6.64 %     6.91 %     7.37 %     6.64 %(8)  
Portfolio Turnover     11 %     22 %     19 %     15 %     12 %  

 

†  The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common
and preferred shares):
 
Expenses(6)     0.72 %(8)     0.74 %     0.73 %     0.69 %     0.68 %(8)  
Interest and fee expense(6)(7)     0.56 %(8)     0.49 %     0.26 %     0.15 %     0.09 %(8)  
Total expenses(6)     1.28 %(8)     1.23 %     0.99 %     0.84 %     0.77 %(8)  
Expenses after custodian fee reduction(6)     0.71 %(8)     0.72 %     0.72 %     0.69 %     0.64 %(8)  
Net investment income(6)     4.05 %(8)     4.17 %     4.32 %     4.58 %     4.37 %(8)  
Senior Securities:  
Total preferred shares outstanding     1,040       1,040       1,040       1,040       1,040    
Asset coverage per preferred share(9)   $ 69,313     $ 68,770     $ 67,232     $ 65,723     $ 66,178    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, November 29, 2002, to September 30, 2003.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1B).

(8)  Annualized.

(9)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements
64




Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1  Significant Accounting Policies

Eaton Vance Insured Municipal Bond Fund II (Insured Municipal Fund II), Eaton Vance Insured California Municipal Bond Fund II (Insured California Fund II), Eaton Vance Insured Florida Municipal Bond Fund (Insured Florida Fund), Eaton Vance Insured Massachusetts Municipal Bond Fund (Insured Massachusetts Fund), Eaton Vance Insured Michigan Municipal Bond Fund (Insured Michigan Fund), Eaton Vance Insured New Jersey Municipal Bond Fund (Insured New Jersey Fund), Eaton Vance Insured New York Municipal Bond Fund II (Insured New York Fund II), Eaton Vance Insured Ohio Municipal Bond Fund (Insured Ohio Fund), and Eaton Vance Insured Pennsylvania Municipal Bond Fund (Insured Pennsylvania Fund) (individually referred to as the Fund or collectively the Funds) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. Each of the Funds was organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated October 3, 2002. Each Fund's investment objective is to achieve current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state. Each Fund seeks to achieve its objective by investing primarily in high grade municipal obligations that are insured as to the timely payment of principal and interest.

The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation — Municipal bonds and taxable obligations, if any, are normally valued on the basis of valuations furnished by a pricing service. Financial futures contracts and options on financial futures contracts listed on commodity exchanges are valued at closing settlement prices. Over-the-counter options on financial futures contracts are normally valued at the mean between the latest bid and asked prices. Interest rate swaps are normally valued on the basis of valuations furnished by a pricing service. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates value. Investments for which valuations or market quotations are unavailable, and investments for which the price of the security is not believed to represent its fair market value, are valued at fair value using methods determined in good faith by or at the direction of the Trustees.

B  Floating Rate Notes Issued in Conjunction with Securities Held — The Funds sell a fixed-rate bond to a broker for cash. At the same time the Funds buy a residual interest for cash in a Special Purpose Vehicle (which is generally organized as a trust) ("SPV") assets and cash flows set up by the broker, often referred to as an inverse floating rate obligation ("Inverse Floater"). The broker deposits a fixed-rate bond into the trust with the same CUSIP number as the fixed-rate bond sold to the broker by the Fund, and which may have been, but is not required to be, the fixed-rate bond purchased from the Fund, (the "Fixed-Rate Bond"). The SPV also issues floating rate notes ("Floating Rate Notes") which are sold to third-parties. The Funds may enter into shortfall and forbearance agreements with the broker by which a Fund agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Fixed-Rate Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Inverse Floater held by a Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the broker transfer the Fixed-Rate Bond held by the SPV to the Fund, thereby collapsing the SPV. Pursuant to Financial Accounting Standards Board ("FASB") Statement No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities" ("FAS 140"), the Funds account for the transaction described above as a secured borrowing by including the Fixed-Rate Bond in their Portfolio of Investments, and account for the Floating Rate Notes as a liability under the caption "payable for floating rate notes issued" in the Funds' "Statement of Assets and Liabilities". The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. At March 31, 2007, the Funds' investments were as follows:

Fund   Floating
Rate Notes
Outstanding
  Interest Rate
or Range of
Interest
Rates
  Collateral for
Floating Rate
Notes
Outstanding
 
Insured Municipal Fund II   $ 39,570,000     3.64% 3.72%   $ 63,303,742    
Insured California Fund II     7,550,000     3.64%     12,139,901    
Insured Florida Fund     4,385,000     3.64% – 3.69%     6,982,500    
Insured Massachusetts Fund     6,765,000     3.64% – 3.68%     10,898,439    
Insured Michigan Fund     5,780,000     3.64% – 3.72%     9,202,229    
Insured New Jersey Fund     9,580,000     3.64% – 3.67%     15,252,848    
Insured New York Fund II     4,665,000     3.64% – 3.72%     7,463,333    
Insured Ohio Fund     4,770,000     3.64% – 3.69%     8,041,033    
Insured Pennsylvania Fund     10,395,000     3.64% – 3.72%     17,188,447    

 


65



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

The Funds' investment policies and restrictions expressly permit investments in inverse floating rate securities. Inverse floating rate securities typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. The Funds' investment policies do not allow the Funds to borrow money for purposes of making investments. Management believes that the Funds' restrictions on borrowings do not apply to the secured borrowings deemed to have occurred for accounting purposes pursuant to FAS 140, which is distinct from legal borrowing of the Funds to which the restrictions apply. Inverse Floaters held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.

C  Income — Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

D  Interest Expense — Interest expense relates to the Fund's liability with respect to floating rate notes held by third parties in conjunction with inverse floater securities transactions by the Funds. Interest expense is recorded as incurred.

E  Federal Taxes — Each Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Therefore, no provision for federal income or excise tax is necessary. At September 30, 2006, the Funds, for federal income tax purposes, had capital loss carryovers which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryovers are as follows:

Fund   Amount   Expires  
Insured Municipal Fund II   $ 561,535     September 30, 2013  
Insured California Fund II     1,015,681     September 30, 2013  
Insured Florida Fund     725,954     September 30, 2013  
Insured Massachusetts Fund     551,616     September 30, 2013  
Insured Michigan Fund     652,425     September 30, 2013  
Insured New Jersey Fund     390,483     September 30, 2013  
Insured Ohio Fund     899,539     September 30, 2013  
Insured Pennsylvania Fund     53,657     September 30, 2013  

 

Additionally, at September 30, 2006, Insured California II Fund had net capital losses of $63,387, attributable to security transactions incurred after October 31, 2005. These are treated as arising on the first day of the Fund's taxable year ending September 30, 2007.

In addition, each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income taxes when received by each Fund, as exempt-interest dividends.

F  Organization and Offering Costs — Costs incurred by each Fund in connection with its organization have been expensed. Costs incurred by each Fund in connection with the offerings of the common shares and preferred shares were recorded as a reduction of capital paid in excess of par applicable to common shares.

G  Financial Futures Contracts — Upon the entering of a financial futures contract, a Fund is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Fund (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Fund. A Fund's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.

H  Options on Financial Futures Contracts — Upon the purchase of a put option on a financial futures contract by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, a Fund will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid.

I  When-Issued and Delayed Delivery Transactions — The Funds may engage in when-issued and delayed delivery transactions. The Funds record when-issued securities on trade date and maintain security positions such that sufficient liquid assets will be available to make payments for the securities purchased. Securities


66



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on settlement date.

J  Interest Rate Swaps — A Fund may enter into interest rate swap agreements to enhance return, to hedge against fluctuations in securities prices or interest rates or as substitution for the purchase or sale of securities. Pursuant to these agreements, the Fund makes bi-annual payments at a fixed interest rate. In exchange, a Fund receives payments based on the interest rate of a benchmark industry index. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains and losses. The value of the swap is determined by changes in the relationship between two rates of interest. The Fund is exposed to credit loss in the event of non-performance by the swap counterparty. However, the Fund does not anticipate non-performance by the counterparty. Risk may also arise from the unanticipated movements in value of interest rates.

K  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirements of capital infusions, or that are expected to result in the restructuring of or a plan of reorganization for an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.

L  Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

M  Indemnifications — Under each Fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund and shareholders are indemnified against personal liability for obligations of each Fund. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.

N  Expense Reduction — Investors Bank & Trust Company (IBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balance each Fund maintains with IBT. All credit balances used to reduce the Funds' custodian fees are reported as a reduction of total expenses in the Statements of Operations.

O  Other — Investment transactions are accounted for on a trade date basis. Realized gains and losses are computed on the basis of specific identification of the securities sold.

P  Interim Financial Statements — The interim financial statements relating to March 31, 2007 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds' management reflects all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Auction Preferred Shares (APS)

Each Fund issued Auction Preferred Shares on January 15, 2003 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Fund. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Fund's APS and generally have been reset every seven days thereafter by an auction, unless a special dividend period has been set. Series A and Series B are identical in all respects except for the dates of reset for the dividend rates. Auction Preferred Shares issued and outstanding as of March 31, 2007 and dividend rate ranges for the six months ended March 31, 2007 are as indicated below:

Fund   Preferred Shares
Issued and Outstanding
  Dividends Rate
Ranges
 
Insured Municipal Fund II Series A   1,750   3.00% – 3.65%  
Insured Municipal Fund II Series B   1,750   2.98% – 3.55%  
Insured California Fund II   1,350   2.00% – 3.60%  
Insured Florida Fund   900   3.10% – 3.75%  
Insured Massachusetts Fund   620   2.11% – 3.50%  

 


67



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Fund   Preferred Shares
Issued and Outstanding
  Dividends Rate
Ranges
 
Insured Michigan Fund   540   2.11% – 3.55%  
Insured New Jersey Fund   900   2.10% – 3.45%  
Insured New York Fund II   900   2.10% – 4.70%  
Insured Ohio Fund   875   3.20% – 3.65%  
Insured Pennsylvania Fund   1,040   2.10% – 3.60%  

 

The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if any Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS shall remain unpaid in an amount equal to two full years' dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the Common Shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Fund is required to maintain certain asset coverage with respect to the APS as defined in each Fund's By-Laws and the Investment Company Act of 1940. Each Fund pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction.

3  Distributions to Shareholders

Each Fund intends to make monthly distributions of net investment income, after payments of any dividends on any outstanding APS. Distributions are recorded on the ex-dividend date. Distributions of realized capital gains, if any, are made at least annually. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. Each dividend payment period for the APS is generally seven days. The applicable dividend rates for Auction Preferred Shares on March 31, 2007 are listed below. For the six months ended March 31, 2007, the amount of dividends each Fund paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:

Fund  




APS
Dividend Rates
as of
March 31, 2007
  Dividends Paid
to Preferred
Shareholders from
net investment
income and net
realized gain
for the six
months ended
March 31, 2007
 



Average APS
Dividend
Rates for the six
months ended
March 31, 2007
 
Insured Municipal Fund II
Series A
    3.60 %     724,715       3.32 %  
Insured Municipal Fund II
Series B
    3.45 %     726,603       3.33 %  
Insured California Fund II     3.30 %     526,424       3.13 %  
Insured Florida Fund     3.45 %     387,303       3.45 %  
Insured Massachusetts Fund     3.00 %     241,092       3.12 %  
Insured Michigan Fund     3.15 %     210,611       3.13 %  
Insured New Jersey Fund     3.10 %     354,514       3.16 %  
Insured New York Fund II     3.20 %     374,846       3.34 %  
Insured Ohio Fund     3.20 %     363,514       3.33 %  
Insured Pennsylvania Fund     3.10 %     418,378       3.23 %  

 

The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid in capital.

4  Investment Adviser Fee and Other Transactions with Affiliates  

The investment adviser fee, computed at an annual rate of 0.55% of each Fund's average weekly gross assets, was earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. Except for Trustees of each Fund who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Fund out of such investment adviser fee. For the six months ended March 31, 2007, the fee was equivalent to 0.55% (annualized) of each Fund's average weekly gross assets and amounted to $677,865, $256,784, $169,968, $118,231, $101,362, $174,556, $172,596, $166,756 and $197,429 for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured


68



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. EVM also serves as the administrator of the Funds, but currently receives no compensation.

In addition, EVM has contractually agreed to reimburse each Fund for fees and other expenses in the amount of 0.15% of average weekly total assets of each Fund during the first five full years of each Fund's operations, 0.10% of average weekly total assets of each Fund in year six, and 0.05% in year seven. For the six months ended March 31, 2007, EVM contractually waived $184,872, $70,032, $46,355, $32,245, $27,644, $46,915, $47,072, $45,479 and $53,061 for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively.

Pursuant to FAS 140, a security sold by the Insured Massachusetts Fund that was later transferred to an SPV that then sold a residual interest to an affiliated fund was deemed to still be held by the Insured Massachusetts Fund. Interest paid by the SPV to the affiliated fund was deemed paid by the Insured Massachusetts Fund to the affiliated fund pursuant to FAS 140. The SPV was collapsed and the security was subsequently sold during the six months ended March 31, 2007.

Certain officers and one Trustee of each Fund are officers of the above organization.

5  Investments  

Purchases and sales of investments, other than U.S. Government securities and short-term obligations, for the six months ended March 31, 2007 were as follows:

Insured Municipal Fund II  
Purchases   $ 33,518,047    
Sales     31,909,385    
Insured California Fund II  
Purchases   $ 21,200,540    
Sales     18,456,111    
Insured Florida Fund  
Purchases   $ 7,178,871    
Sales     6,426,964    

 

Insured Massachusetts Fund  
Purchases   $ 4,001,487    
Sales     7,532,796    
Insured Michigan Fund  
Purchases   $ 1,155,382    
Sales     1,426,961    
Insured New Jersey Fund  
Purchases   $ 9,849,059    
Sales     10,144,777    
Insured New York Fund II  
Purchases   $ 7,824,256    
Sales     8,543,136    
Insured Ohio Fund  
Purchases   $ 9,025,436    
Sales     9,190,940    
Insured Pennsylvania Fund  
Purchases   $ 9,810,964    
Sales     9,012,897    

 

6 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)

The cost and unrealized appreciation (depreciation) in value of the investments owned by each Fund at March 31, 2007, as computed for Federal income tax purposes, were as follows:

Insured Municipal Fund II  
Aggregate Cost   $ 233,576,298    
Gross unrealized appreciation   $ 15,663,399    
Gross unrealized depreciation     (60,219 )  
Net unrealized appreciation   $ 15,603,180    
Insured California Fund II  
Aggregate Cost   $ 91,479,684    
Gross unrealized appreciation   $ 4,610,483    
Gross unrealized depreciation     (27,222 )  
Net unrealized appreciation   $ 4,583,261    

 


69



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Insured Florida Fund  
Aggregate Cost   $ 58,538,043    
Gross unrealized appreciation   $ 3,297,711    
Gross unrealized depreciation     (28,086 )  
Net unrealized appreciation   $ 3,269,625    
Insured Massachusetts Fund  
Aggregate Cost   $ 39,792,562    
Gross unrealized appreciation   $ 2,798,532    
Gross unrealized depreciation     (27,583 )  
Net unrealized appreciation   $ 2,770,949    
Insured Michigan Fund  
Aggregate Cost   $ 34,135,801    
Gross unrealized appreciation   $ 2,277,435    
Gross unrealized depreciation     (872 )  
Net unrealized appreciation   $ 2,276,563    
Insured New Jersey Fund  
Aggregate Cost   $ 59,112,829    
Gross unrealized appreciation   $ 3,770,895    
Gross unrealized depreciation     (20,478 )  
Net unrealized appreciation   $ 3,750,417    
Insured New York Fund II  
Aggregate Cost   $ 59,443,923    
Gross unrealized appreciation   $ 2,880,860    
Gross unrealized depreciation     (122,469 )  
Net unrealized appreciation   $ 2,758,391    
Insured Ohio Fund  
Aggregate Cost   $ 55,596,112    
Gross unrealized appreciation   $ 3,863,127    
Gross unrealized depreciation     (43,584 )  
Net unrealized appreciation   $ 3,819,543    
Insured Pennsylvania Fund  
Aggregate Cost   $ 68,366,595    
Gross unrealized appreciation   $ 3,792,291    
Gross unrealized depreciation     (60,315 )  
Net unrealized appreciation   $ 3,731,976    

 

7  Shares of Beneficial Interest

Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares were as follows:

    Insured Municipal Fund II  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
    1,599       4,301    
Net increase     1,599       4,301    
    Insured California Fund II  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
          522    
Net increase           522    
    Insured Florida Fund  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
          1,642    
Net increase           1,642    
    Insured Massachusetts Fund  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
    528       2,419    
Net increase     528       2,419    
    Insured Michigan Fund  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
          620    
Net increase           620    

 


70



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

    Insured New Jersey Fund  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
    599       2,951    
Net increase     599       2,951    
    Insured New York Fund II  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
    175          
Net increase     175          
    Insured Pennsylvania Fund  
    Six Months Ended
March 31, 2007
(Unaudited)
  Year Ended
September 30, 2006
 
Shares issued pursuant to the
Fund's dividend reinvestment plan
          975    
Net increase           975    

 

Insured Ohio Fund did not have any transactions in common shares for the six months ended March 31, 2007 and for the year ended September 30, 2006.

8  Financial Instruments

The Funds regularly trade in financial instruments with off-balance sheet risk in the normal course of their investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and interest rate swaps and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment a Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

A summary of obligations under these financial instruments at March 31, 2007 is as follows:

Futures Contracts  

 



Fund
 
Expiration
Date
 

Contracts
 

Position
 
Aggregate
Cost
 

Value
  Net
Unrealized
Appreciation
 
Insured
Municipal II
  06/07   301
U.S. Treasury Bond
  Short   $(33,957,861)   $ (33,486,250 )   $471,611  
Insured
California II
  06/07   69
U.S. Treasury Bond
  Short   $(7,791,368)   $ (7,676,250 )   $115,118  
Insured
Florida
  06/07   37
U.S. Treasury Bond
  Short   $(4,174,230)   $ (4,116,250 )   $57,980  
Insured
Massachusetts
  06/07   28
U.S. Treasury Bond
  Short   $(3,160,840)   $ (3,115,000 )   $45,840  
Insured
Michigan
  06/07   10
U.S. Treasury Bond
  Short   $(1,128,168)   $ (1,112,500 )   $15,668  
Insured
New Jersey
  06/07   44
U.S. Treasury Bond
  Short   $(4,967,033)   $ (4,895,000 )   $72,033  
Insured
New York II
  06/07   38
U.S. Treasury Bond
  Short   $(4,287,047)   $ (4,227,500 )   $59,547  
Insured
Ohio Fund
  06/07   83
U.S. Treasury Bond
  Short   $(9,363,795)   $ (9,233,750 )   $130,045  

 

At March 31, 2007, the Funds had entered into an interest rate swap agreement with Merrill Lynch Capital Services, Inc. whereby the Funds make bi-annual payments at a fixed rate equal to 4.006% on the notional amount. In exchange, the Funds receive bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amounts. The summary of these agreements are as follows:

Interest Rate Swaps  

 

Fund   Effective
Date
  Termination
Date
  Notional
Amount
  Net
Unrealized
(Depreciation)
 
Insured Municipal Fund II   8/7/07   8/7/37   $ 6,150,000     $ (1,065 )  
Insured California Fund II   8/7/07   8/7/37   $ 2,350,000     $ (407 )  
Insured Florida Fund   8/7/07   8/7/37   $ 1,550,000     $ (268 )  
Insured Massachusetts Fund   8/7/07   8/7/37   $ 1,100,000     $ (191 )  
Insured Michigan Fund   8/7/07   8/7/37   $ 900,000     $ (156 )  
Insured New Jersey Fund   8/7/07   8/7/37   $ 1,600,000     $ (277 )  
Insured New York Fund II   8/7/07   8/7/37   $ 1,600,000     $ (277 )  
Insured Ohio Fund   8/7/07   8/7/37   $ 1,500,000     $ (259 )  
Insured Pennsylvania Fund   8/7/07   8/7/37   $ 1,800,000     $ (312 )  

 


71



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

At March 31, 2007, the Funds had entered into an interest rate swap agreement with Citibank, N.A. whereby the Funds make bi-annual payments at a fixed rate equal to 3.925% on the notional amount. In exchange, the Funds receive bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amounts. The summary of these agreements are as follows:

Interest Rate Swaps  

 

Fund   Effective
Date
  Termination
Date
  Notional
Amount
  Net
Unrealized
Appreciation
 
Insured Municipal Fund II   8/16/07   8/16/27   $ 7,100,000     $ 10,448    
Insured California Fund II   8/16/07   8/16/27   $ 2,350,000     $ 3,458    
Insured Florida Fund   8/16/07   8/16/27   $ 1,550,000     $ 2,281    
Insured Massachusetts Fund   8/16/07   8/16/27   $ 1,050,000     $ 1,545    
Insured Michigan Fund   8/16/07   8/16/27   $ 600,000     $ 883    
Insured New Jersey Fund   8/16/07   8/16/27   $ 1,600,000     $ 2,354    
Insured New York Fund II   8/16/07   8/16/27   $ 1,600,000     $ 2,354    
Insured Ohio Fund   8/16/07   8/16/27   $ 1,500,000     $ 2,207    
Insured Pennsylvania Fund   8/16/07   8/16/27   $ 1,800,000     $ 2,649    

 

At March 31, 2007, certain Funds had entered into an interest rate swap agreement with JPMorgan Chase Bank, N.A., whereby the Funds make bi-annual payments at a fixed rate equal to 3.984% on the notional amount. In exchange, the Funds receive bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amount. The summary of these agreements are as follows:

Interest Rate Swaps  

 

Fund   Effective
Date
  Termination
Date
  Notional
Amount
  Net
Unrealized
(Depreciation)
 
Insured Municipal Fund II   10/25/07   10/25/27   $ 9,900,000     $ (46,707 )  
Insured California Fund II   10/25/07   10/25/27   $ 3,750,000     $ (17,692 )  
Insured Florida Fund   10/25/07   10/25/27   $ 2,500,000     $ (11,795 )  
Insured Massachusetts Fund   10/25/07   10/25/27   $ 1,750,000     $ (8,256 )  
Insured Michigan Fund   10/25/07   10/25/27   $ 1,500,000     $ (7,077 )  
Insured New Jersey Fund   10/25/07   10/25/27   $ 2,500,000     $ (11,795 )  
Insured New York Fund II   10/25/07   10/25/27   $ 2,500,000     $ (11,794 )  
Insured Ohio Fund   10/25/07   10/25/27   $ 2,450,000     $ (11,559 )  

 

At March 31, 2007, the Insured Pennsylvania Fund had entered into an interest rate swap agreement with Morgan Stanley Capital Services, Inc., whereby the Fund makes bi-annual payments at a fixed rate equal to 3.948% on the notional amount. In exchange, the Fund receives bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amount. The summary of this agreement is as follows:

Interest Rate Swaps  

 

Fund   Effective
Date
  Termination
Date
  Notional
Amount
  Net
Unrealized
Appreciation
 
Insured Pennsylvania Fund     1/23/08       1/23/38     $ 2,000,000     $ 21,689    

 

At March 31, 2007, the Insured Pennsylvania Fund entered into an interest rate swap agreement with Lehman Brothers Inc., whereby the Fund makes bi-annual payments at a fixed rate equal to 3.896% on the notional amount. In exchange, the Fund receives bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amount. The summary of this agreement is as follows:

Interest Rate Swaps  

 

Fund   Effective
Date
  Termination
Date
  Notional
Amount
  Net
Unrealized
Appreciation
 
Insured Pennsylvania Fund     10/23/07       10/23/37     $ 2,000,000     $ 34,331    

 

At March 31, 2007, the Funds had sufficient cash and/or securities to cover margin requirements on these contracts.

9  Overdraft Advances

Pursuant to the custodian agreement between the Funds and IBT, IBT may in its discretion advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft by the Funds, the Funds are obligated to repay IBT at the current rate of interest charged by IBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to IBT. IBT has a lien on a Fund's assets to the extent of any overdraft. At March 31, 2007, Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund , Insured New York Fund II and Insured Ohio Fund had payments due to IBT pursuant to the foregoing arrangement of $345,944, $1,701,096, $1,187,114, $86,262, $432,576 and $562,950, respectively.


72



Eaton Vance Insured Municipal Bond Funds as of March 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

  10  Recently Issued Accounting Pronouncements

In June 2006, the FASB issued FASB Interpretation No. 48, ("FIN 48") "Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is currently evaluating the impact of applying the various provisions of FIN 48.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, ("FAS 157") "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.


73




Eaton Vance Insured Municipal Bond Funds

DIVIDEND REINVESTMENT PLAN

Each Fund offers a dividend reinvestment plan (the Plan) pursuant to which shareholders may elect to have dividends and capital gains distributions automatically reinvested in common shares (the Shares) of the same Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by PFPC Inc. as dividend paying agent. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested.

If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Fund's transfer agent, PFPC Inc., or you will not be able to participate.

The Plan Agent's service fee for handling distributions will be paid by each Fund. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases.

Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.

If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent.

Any inquiries regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710.


74



Eaton Vance Insured Municipal Bond Funds

APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN

This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.

The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.

  Please print exact name on account

  Shareholder signature  Date

  Shareholder signature  Date

  Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.

YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.

This authorization form, when signed, should be mailed to the following address:

Eaton Vance Insured Municipal Bond Funds
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710

Number of Employees

Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees.

Number of Shareholders

As of March 31, 2007, our records indicate that there are 32, 11, 4, 5, 10, 9, 17, 16 and 48 registered shareholders for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively, and approximately 4,783, 1,604, 1,204, 846, 915, 1,446, 1,234, 1,406 and 1,737 shareholders owning the Fund shares in street name, such as through brokers, banks, and financial intermediaries for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively.

If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:

Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265

American Stock Exchange symbols

Insured Municipal Fund II  EIV  Insured New Jersey Fund  EMJ

Insured California Fund II  EIA  Insured New York Fund II  NYH

Insured Florida Fund  EIF  Insured Ohio Fund  EIO

Insured Massachusetts Fund  MAB  Insured Pennsylvania Fund  EIP

Insured Michigan Fund  MIW


75



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS

Overview of the Contract Review Process

The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board of trustees, including by a vote of a majority of the trustees who are not "interested persons" of the fund ("Independent Trustees") cast in person at a meeting called for the purpose of considering such approval.

At a meeting of the Boards of Trustees (each a "Board") of the Eaton Vance group of mutual funds (the "Eaton Vance Funds") held on March 27, 2006, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Special Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Special Committee reviewed information furnished for a series of meetings of the Special Committee held in February and March 2006. Such information included, among other things, the following:

Information about Fees, Performance and Expenses

•  An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds;

•  An independent report comparing each fund's total expense ratio and its components to comparable funds;

•  An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods;

•  Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices;

•  Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund;

•  Profitability analyses for each adviser with respect to each fund managed by it;

Information about Portfolio Management

•  Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed;

•  Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through "soft dollar" benefits received in connection with the funds' brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds;

•  Data relating to portfolio turnover rates of each fund;

•  The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;

Information about the Adviser

•  Reports detailing the financial results and condition of each adviser;

•  Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;

•  Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;

•  Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions;

•  Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates;

Other Relevant Information

•  Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;

•  Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds' administrator; and

•  The terms of each advisory agreement.


76



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT'D

In addition to the information identified above, the Special Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve month period ended March 31, 2006, the Board met nine times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met eight, twelve and five times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund's investment objective.

For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund's investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.

The Special Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Special Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Special Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.

Results of the Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Special Committee concluded that the continuance of the investment advisory agreements of the following funds:

•  Insured Municipal Bond Fund II

•  Insured California Municipal Bond Fund II

•  Insured Florida Municipal Bond Fund

•  Insured Massachusetts Municipal Bond Fund

•  Insured Michigan Municipal Bond Fund

•  Insured New Jersey Municipal Bond Fund

•  Insured New York Municipal Bond Fund II

•  Insured Ohio Municipal Bond Fund

•  Insured Pennsylvania Municipal Bond Fund

(the "Funds"), each with Eaton Vance Management (the "Adviser"), including their fee structures, is in the interests of shareholders and, therefore, the Special Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Special Committee as well as the factors considered and conclusions reached by the Special Committee with respect to each agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the advisory agreement for each Fund.

Nature, Extent and Quality of Services

In considering whether to approve the investment advisory agreements of the Funds, the Board evaluated the nature, extent and quality of services provided to the Funds by the Adviser.

The Board considered the Adviser's management capabilities and investment process with respect to the types of investments held by each Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Funds, and recent changes in the identity of such personnel. In particular, the Board evaluated, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. Specifically, the Board considered the Adviser's 30-person municipal bond team, which includes six portfolio managers and nine credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personnel, and the time and attention devoted to each Fund in the complex by senior management.

The Board reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the National Association of Securities Dealers.


77



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT'D

The Board also considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the respective investment advisory agreements.

Fund Performance

The Board compared each Fund's investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the one-year period ended September 30, 2005 for each Fund. On the basis of the foregoing and other relevant information, the Board concluded that the performance of each Fund is satisfactory.

Management Fees and Expenses

The Board reviewed contractual investment advisory fee rates payable by each Fund (referred to as "management fees").

As part of its review, the Board considered each Fund's management fee and total expense ratio for the one-year period ended September 30, 2005, as compared to a group of similarly managed funds selected by an independent data provider. The Board considered the fact that the Adviser had waived fees and/or paid expenses for each of the Funds.

After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded with respect to each Fund that the management fee charged to the Fund for advisory and related services and the total expense ratio of the Fund are reasonable.

Profitability

The Board reviewed the level of profits realized by the Adviser and, if applicable, its affiliates in providing investment advisory and administrative services to each Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationship with the Funds.

The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.

Economies of Scale

In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and each Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board also considered the fact that none of the Funds is continuously offered and concluded that, in light of the level of the adviser's profits with respect to each Fund, the implementation of breakpoints in the advisory fee schedule is not appropriate. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and each Fund.


78




Eaton Vance Insured Municipal Bond Funds

INVESTMENT MANAGEMENT

Eaton Vance Insured Municipal Bond Funds

Officers
Cynthia J. Clemson
President of EIA, EIF, MIW, NYH,
EIO and EIP;
Vice President of EIV,
MAB and EMJ and Portfolio Manager of EIA
Robert B. MacIntosh
President of EIV, MAB and EMJ;
Vice President of EIA, EIF, MIW,
NYH, EIO and EIP and Portfolio
Manager of MAB and EMJ
James B. Hawkes
Vice President and Trustee
William H. Ahern
Vice President and Portfolio Manager of EIV, MIW and EIO
Craig R. Brandon
Vice President and Portfolio Manager of EIF and NYH
Thomas M. Metzold
Vice President and Portfolio Manager of EIP
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
Paul M. O'Neil
Chief Compliance Officer
  Trustees
Samuel L. Hayes, III
Chairman
Benjamin C. Esty
Thomas E. Faust Jr.
Allen R. Freedman
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Heidi L. Steiger
Lynn A. Stout
Ralph F. Verni
 

 

American Stock Exchange symbols              
Insured Municipal Fund II   EIV   Insured New Jersey Fund   EMJ  
Insured California Fund II   EIA   Insured New York Fund II   NYH  
Insured Florida Fund   EIF   Insured Ohio Fund   EIO  
Insured Massachusetts Fund   MAB   Insured Pennsylvania Fund   EIP  
Insured Michigan Fund   MIW          

 


79



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Investment Adviser and Administrator of Eaton Vance Insured Municipal Bond Funds
Eaton Vance Management

The Eaton Vance Building
255 State Street
Boston, MA 02109

Custodian
Investors Bank & Trust Company

200 Clarendon Street
Boston, MA 02116

Transfer Agent and Dividend Disbursing Agent
PFPC Inc.

Attn: Eaton Vance Insured Municipal Bond Funds
P.O. Box 43027
Providence, RI 02940-3027
(800) 331-1710

Eaton Vance Insured Municipal Bond Funds
The Eaton Vance Building
255 State Street
Boston, MA 02109



1557-5/07  9IMBIISRC




Item 2. Code of Ethics

The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.

Item 3. Audit Committee Financial Expert

The registrant’s Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman and Chief Operating Officer of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds).

Item 4. Principal Accountant Fees and Services

Not required in this filing.

Item 5.  Audit Committee of Listed registrants

Not required in this filing.

Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.




The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. The investment adviser will generally vote proxies through the Agent. The Agent is required to vote all proxies and/or refer then back to the investment adviser pursuant to the Policies. It is generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent. The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies. The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies. The investment adviser generally supports management on social and environmental proposals. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personal of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists. If it is determined that a material conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not required in this filing.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

No such purchases this period.

Item 10. Submission of Matters to a Vote of Security Holders.

No Material Changes.




Item 11. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) During the second fiscal quarter of the period covered by this report, the registrant’s internal control over financial reporting was modified to enhance the review and analysis of the relevant terms and conditions of transfers of securities in connection with inverse floating rate obligations in light of Statement of Financial Accounting Standards No. 140.

Item 12. Exhibits

(a)(1)

 

Registrant’s Code of Ethics – Not applicable (please see Item 2).

(a)(2)(i)

 

Treasurer’s Section 302 certification.

(a)(2)(ii)

 

President’s Section 302 certification.

(b)

 

Combined Section 906 certification.

 




Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Insured Pennsylvania Municipal Bond Fund

By:

/s/Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 10, 2007

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Barbara E. Campbell

 

 

Barbara E. Campbell

 

Treasurer

 

 

 

 

Date:

May 10, 2007

 

By:

/s/Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 10, 2007